One of the worlds biggest airlines is running out of cash.
Dubai based, Emirates Airline may soon may soon be reaching out for government support, as many parts of the aviation sector still battle through the pain of COVID-19 and the impacts the pandemic is having on the global aviation industry.
We could soon see the Dubai-based airline reach out to the Dubai Government, requesting another equity injection if demand for air-travel doesn’t pick up.
The middle east carrier had hoped that the global rollout of the COVID-19 vaccine would renew confidence in the air travel but demand remains at very low levels.
Emirates’ fully vaccinated @Airbus A380 flight #EK2021 operated today across the UAE with close to 400 fully vaccinated customers celebrating the UAE’s successful vaccination programme. All proceeds from the flight went to the Emirates Airline Foundation. https://t.co/XSgvMOWYBd pic.twitter.com/EdaW62VTrT
— Emirates Airline (@emirates) April 10, 2021
Many airlines are continuing to ground planes and some are even flying them near-empty.
The President of Emirates Airline says the carrier is “good for another six, seven or eight months in terms of cash” stating that the airline was just cutting it thin by covering operational costs through current cash flow.
Emirates, the operator of the world’s biggest A380 fleet lost $3.4 billion US dollars in the first half of the year however received $2billion in equity in 2020 from the Dubai Government.
Emirates has resumed flights with all of its 151 Boeing triple seven jets which are mainly carrying cargo but in terms of passenger numbers Emirates are seeing between 20,000 to 30,000 passengers a day.
