Dubai, May 14 / BNA / The Emirates airline in Dubai recorded an annual loss of $1.1 billion, a sharp improvement from a loss of $5.5 billion the previous year, as demand for international travel was boosted by governments easing restrictions related to the epidemic.
The airline, which operates international services, reported a 91% jump in revenue to $16.1 billion for the year ended March 31 as passenger numbers tripled to 19.6 million, Reuters reports.
Sheikh Ahmed bin Saeed Al Maktoum, the company’s chairman and CEO, said in a statement that the business recovery accelerated, especially in the second half of the year.
The state-owned airline said it filled 58.6% of air seats, up from 44.3% a year ago, while increasing the number of destinations it served from 120 at the start of the fiscal year to more than 140 on March 31.
This was the airline’s second consecutive annual loss and only the fourth in its nearly 40-year operating history.
Emirates has forecast a return to profitability in this fiscal year, while Chairman Sheikh Ahmed said on Friday that the Emirates Group, which includes the airline, will do so as well.
“This year we focused on restoring our operations quickly and safely wherever the pandemic-related restrictions in our markets were eased,” Sheikh Ahmed said, while warning that the group was closely following the impact of higher fuel prices and inflation.
Adel El Reda, chief operating officer, warned this week that while Emirates was managing high fuel prices and inflation, the current oil price was unsustainable for airlines.
He said airfares will rise, although airlines will have to bear some costs so as not to stifle the travel recovery.
The Emirates Group reported a loss of $1 billion for the year, with revenue up 86% to $18.1 billion. dnata, the group’s global airport and travel services business, generated $30 million in profit.
Sheikh Ahmed said this week that he hopes that after the current fiscal year, the airline will be able to start repaying the 15 billion dirhams ($4.1 billion) it received from the Dubai government during the pandemic.