This archive report was first published on 11 May 2020.
On March 31, 2020, Emirates Group reported a 28% decline in full-year profit, with net income falling to approximately $463 million from $626 million the previous year.
The group's revenue for the year ended March 31, 2020, decreased by 5% to $28.3 billion, primarily due to the closure of the Dubai airport runway in the first quarter and the pandemic in the fourth quarter.
Emirates Airlines, a subsidiary of Emirates Group, reported a 21% increase in its full-year profit, despite the pandemic's expected impact on the coming year's performance.
However, the group's revenue from Dnata's travel portfolio declined by 4% to $964 million.
Emirates Group invested $3.2 billion in new aircraft and equipment, the acquisition of companies, modern facilities, technologies, and employee initiatives in 2019-20, a 20% decline from the $3.9 billion spent in 2018-2019.
The group ended the fiscal year with a cash balance of $7 billion, up 15% from last year, due to lower fuel costs.
Due to the current climate, the group said it would not pay a dividend to shareholders for this financial year.
According to Bloomberg, Emirates Group raised $1.2 billion in financing in the first quarter to cushion it from the impact of COVID-19 on cash flows, and plans to tap the market for further liquidity in the first fiscal quarter of 2020-21.
Emirates Airlines received a government bailout in April to enable it to remain afloat during the COVID-19 pandemic.
The airline has seen its passenger fleet grounded since March 24, 2020.
Read Also: Emirates Receives Govt Bailout to Survive COVID-19
The Emirates Group is a state-owned Dubai-based international aviation holding company, comprising Dnata and Emirates Airlines.
Emirates Airlines flies to over 150 destinations across six continents, operating a fleet of over 250 wide-bodied aircraft.
