Emirates Airbus 380-800 is to land.
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As new travel corridors open and the global aviation industry seeks to bounce back from the worst crisis in its history, the emirate expects to return to profitability in the next two years.
“I believe that within the next 18 months, after two years, we will return to profitability,” Emirati President Tim Clarke told CNBC in an exclusive interview on Sunday.
He added, “We will definitely remain cash positive during the latter part of next year, returning to profitability in (fiscal year) 2022-2023.”
Earlier this week, the emirate group reported a loss of 8. 8.8 billion in the first half of the year, its first loss in 30 years, as coronavirus-related lockdown has disrupted global air travel. Revenue fell 74 percent to 3. 7.37 billion.
“There are a lot of things that could change,” Clark said, adding that there are still many important concerns in the area. “We are an international company that trades in works all over the world.”
His comments come after the IATA’s new warning that the industry will not be able to cut costs sufficiently to disable serious cash burns and avoid bankruptcy in 2021.
“Cash is king,” Clark said. “As long as we can keep our cash position in good shape, we believe we will be ready to re-enter the markets, and as big as we have always done.”
The emirate said it would enter its cash reserves to ensure it had access to sufficient funds to sustain operations. It has reduced its staff by about 25 per cent, and the Dubai government has injected ડો 2 billion through equity investments to support its recovery.
Clarke added, “We believe things will get better quickly. I’m not one of those people who believes it will take a long time or it won’t come back the way it was,” Clarke added.
“I think we’ll be as good as we were an airline in Covid’s days before.”
UK-UAE Travel Corridor
The United Kingdom this week added the UAE to its list of travel corridors, i.e. Nov. Passengers traveling from the UAE to the UK after 14 will no longer need to be self-separated for 14 days.
Praising the decision as “a major boost to tourism in terms of travel between the two countries”, Clarke said the government had been trying for five months to get the United Kingdom government to put them on their list, trying to resign.
The UK is one of the most important markets on the Emirates network for passenger demand and profitability, with the largest share of seats departing in 2019 on the London Heathrow route from Dubai.
“Since the end of the lockdown in December, we have been seeing a significant increase in the booking speed in our system,” said Clark.
He added, “I am hopeful that other corridors will open up as we get this thing under control.” “It takes a little longer than everyone thinks and it’s not without its pitfalls.”
Clark said travel to 104 cities has now resumed, and 151 of its Boeing 777 aircraft are operating and carrying passengers in the network in various capacities. The emirate still has about 115 A380 aircraft on the ground.
Improve the status of Mac Crony
Clark was more enthusiastic about the regional and global economic outlook, but said the recovery would not come directly. “I think the global economy will take time to get out of this particular state,” he said.
It expects oil prices to remain subdued, with additional supply and weak demand helping to reduce costs for large carriers such as Emirates.
“As long as it is unclear and the oil supply remains strong, its price will remain at the 40 to $ 50 level during 2021,” he said. “It gives us interplay pricing and allows us to operate profitably in both P&L situations and from a cash perspective.”
Improvement: This article has been revised to show that about 115 Emirates aircraft remain grounded.
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