Emirates Airlines requests a loan to face the worst crisis in its history

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The Emirates airline, wholly owned by the Dubai government, has said it will borrow to weather the Corona virus epidemic and that it may have to take tougher measures to tackle months that will be the most difficult in its history.

The company, which halted regular passenger flights in March due to the Corona virus pandemic that has ravaged global travel demand, said the recovery of demand would not happen for at least 18 months.

The company announced a 21 percent rise in profits for the fiscal year ending March 31, but said the outbreak? It hurt performance in the fourth quarter and it will knock on the banks’ doors to obtain loans during the first quarter to alleviate the effect of the spread of the virus on cash flow.

Emirates Airlines, which has received a promise to receive financial aid from its emirate Dubai, did not say how much it expected to collect.

“The Covid-19 epidemic will have a tremendous impact on our performance in 2020-2021,” Chairman of the Board Sheikh Ahmed bin Saeed said in a statement.

“We continue to take strong cost-management measures and other steps necessary to protect our work while planning to resume activities,” he added.

In an internal e-mail sent to the workers, on Sunday, Sheikh Ahmed said that the coming months will be the most difficult in the airline’s 35-year history.

“At some point, if our situation does not improve, we will have to take more difficult measures,” he says in the letter.

Emirates Airlines has yet to respond to an email request for comment on the internal message.

The Emirates Group, which includes Emirates Airlines assets, said it would not pay annual dividends to the Dubai Government’s fund, to which it is a shareholder. She explained that her cash assets amounted to 25.6 billion dirhams (seven billion dollars).

In March, Emirates Airlines temporarily cut its wages for the Corona pandemic. It was not clear when it would resume its regular flights.

Its sister company, Airport Services, dnata, saw a 57 percent decrease in profits to 618 million dirhams in the year ended March 31, due to increased investment in the catering and airport services and weak travel demand.

Sheikh Ahmed said in the internal e-mail that Dnata had dismissed some employees in order to be eligible to benefit from unemployment benefit programs.

Dnata is reviewing operations in Australia after being excluded from a government job protection program there because it is owned by a foreign government.

Profits of the Emirates Group, which also includes dnata, fell 28 percent to 1.7 billion dirhams. Revenue fell 4.8 percent to 104 billion.

The group said that unfavorable exchange rates cost it a profit of one billion dirhams, but it has received some support from lower oil prices.







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