Emirates CEO: "It Will Take More Than 1.5 Years for Air Travel Demand to Recover"

Emirates SkyCargo's 'B777' Freighter

[Asia Economy Reporter Kwon Jae-hee] Sheikh Ahmed Al Maktoum, CEO of Emirates Airlines, the largest airline in the Middle East, predicted that "it will take at least 1 year and 6 months for the aviation industry, which has been hit by the novel coronavirus infection (COVID-19), to recover."

According to the Wall Street Journal (WSJ) on the 10th (local time), Sheikh Ahmed CEO said, "The full impact of COVID-19 will be reflected in the 2020 and 2021 performance," adding, "We will continue cost management measures to protect the business."

He also added that Emirates Airlines may suspend shareholder dividends and increase borrowings to secure cash liquidity.

Earlier, Emirates Airlines had suspended all passenger flights from March 25, except for cargo flights and repatriation flights for foreigners, in accordance with UAE government guidelines.

Due to the impact of COVID-19, Emirates Airlines recorded a net profit of 1.1 billion dirhams (approximately 365.3 billion KRW) in the first quarter. This is a 21% increase compared to the same period last year, but revenue decreased by 6% during the same period to 92 billion dirhams (approximately 30.6 trillion KRW).

Sheikh Ahmed CEO explained, "Performance was good for the past 11 months, but the situation changed rapidly from mid-February," adding, "As countries locked down their borders due to the COVID-19 pandemic, demand for international flights sharply declined."

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