Emirates Airlines Gets a $2 Billion Injection From the Dubai Government
As the aviation market in the entire world crashed as a result of the spread of the COVID-19 pandemic, airline companies were arguably the biggest sectors that got negatively affected during the lock-down. Dubai just injected $2 billion (AED7.3 billion) into Emirates Airlines as fresh equity since March, according to Reuters.
The step is a follow-up on Dubai Crown Prince and Chairman of the Executive Council, Sheikh Hamdan bin Mohammed Al Maktoum’s tweet in March that the government would help the airline overcome the COVID-19 crisis. He tweeted that the government is fully committed to supporting Emirates Airlines in the current critical period.
“As a shareholder of Emirates Airlines, the government will inject equity considering its strategic importance to the Dubai and UAE economy and the airline’s key role in positioning Dubai as a major international aviation hub,” stated Emirates about the government last March.
As a result of the COVID-19 pandemic, Emirates saw its profit drop 28 percent for the financial year ending on March 31. Etihad reported operating losses of $758 million in the first six months of this year. According to the International Air Transport Association (IATA), although major airlines have been relaunching international routes, a full recovery in the sector will not be seen until 2024.