The Emirates Group: Well-positioned for the future


While a return of traffic to pre-COVID levels is not expected before at least 2023, several areas of concern remain for airlines globally from which Emirates too is not immune:Varying levels of travel restrictions, changing by countryRestrictions on passenger load factors that may be applied by relevant authoritiesSpeed of traffic recovery with an emphasis on higher-yielding business travelDependence on regional and global traffic flowsRevenue Yield performanceOptimised network and fleet to meet the new market conditionsDespite the turbulent times brought on by the pandemic, resulting in more than 40 airlines globally either suspending operations or ceasing altogether, the Emirates Group appears to be well armoured to weather through the current crisis:Remaining strong cash reserves of US$ 5.6 billion, despite a reduction of US$1.4 billion in H1 2020A supportive ownership structure with US$ 2 billion secured as equity investment during H1 2020Steady recovery of operations with the airline already operating to 104 countries, albeit at lower frequency and aircraft sizesA leaner organisation with a reduced cost baseFurthermore, the group is positioning itself to play a vital role in the global pandemic recovery, having established the world’s first and largest dedicated air cargo hub for COVID-19 vaccines at Dubai World Central.

With two-thirds more...