Emirates Group has recorded a 28% decline in full-year profit as the impact of the coronavirus cut into earnings in March.
The group results show that net income for the year ended 31st March 2020 hit approximately $463 million, down from $626 million last year.
The group’s year on year revenue fell 5% to $28.3 billion, brought about by the closure of the Dubai airport runway in the first quarter and the pandemic in the fourth quarter.
The group’s financial report shows that revenue from the Dnata’s travel portfolio declined by 4% to $964 million.
On the other hand, Emirates Airlines, a subsidiary of Emirates Group reported a 21% increase in its full-year profit, with reports indicating that the pandemic would have a massive impact on the coming year’s performance due to the “drying up of flight traffic and travel demand all around the world.”
In 2019-20, the group invested $3.2 billion in new aircraft and equipment, the acquisition of companies, modern facilities, technologies, and employee initiatives. The capital expenditure declined by 20% from $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, attributing it to lower fuel costs.
Due to the current climate, the group said it would not pay a dividend to shareholders for this financial year.
Bloomberg reports that 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 which started in April.
In April, Emirates Airlines received a government bailout to enable it to remain afloat during this COVID-19 pandemic. The airline has seen its passenger fleet grounded since 24th March 2020.
The Emirates Group is a state-owned Dubai-based international aviation holding company. Its headquarters are in Garhoud, Dubai, United Arab Emirates, near Dubai International Airport. The Emirates Group comprises Dnata, an aviation services company providing ground handling services at 78 airports, and Emirates Airlines, the largest airline in the Middle East.
Emirates Airlines flies to over 150 destinations across six continents, operating a fleet of over 250 wide-bodied aircraft.