Connect with us

Hi, what are you looking for?

Stock

Emirates may need to raise cash if air travel does not pick up

Stock Markets10 minutes ago (Apr 21, 2021 06:00AM ET)

(C) Reuters. FILE PHOTO: Emirates airline sees full fleet returning to the skies this year

DUBAI (Reuters) -Emirates may need to raise more cash this year, possibly through another equity injection from the Dubai government, if demand for air travel does not pick up soon, its president said on Wednesday.

The state carrier had hoped the global vaccine rollout would renew confidence in air travel but demand remains at very low levels, leaving many airlines to ground planes or fly them near-empty.

“We are good for another six, seven or eight months in terms of cash. We have sufficient cash coming in to be able to keep the day-to-day operation at a neutral basis,” Tim Clark told the online World Aviation Festival.

“But like everybody else, if in six months global demand is where it is today then we are all going to face difficulties. Not just Emirates”

Emirates, which lost 12.6 billion dirhams ($ 3.4 billion) in the first half of the year, got $2 billion in equity in 2020 from the Dubai government, its sole shareholder.

The airline would make a recommendation to the government on raising cash, Clark said without saying exactly when that would be done.

The recommendation could be for equity injection, or for the airline to raise debt or to take other measures, he said without specifying.

“The balance sheet is pretty strong regardless of what has happened.”

The cash situation, however, could be turned around by September-October as long as demand picks up, Clark said, adding that he hoped the airline would not have to seek cash.

Emirates has resumed flights with all of its 151 Boeing (NYSE:BA) 777 jets which are mainly carrying cargo, with about 20,000 to 30,000 passengers a day.

Clark said the airline could retain some of its older 777 passenger jets that are due to retire and instead convert them into cargo-only planes as freight demand remains high.

He said that he expected there would be demand for business class travel post-pandemic even if corporate travel does diminish through executives opting to hold meetings online instead of travelling.

Demand would likely be supported by cheaper fares to fill business class seats if corporate travel does not rebound, he said.

Clark, who was due to retire last year, said he wanted to set the airline on its future course before he retires, but added he no longer knew when that would be.

Emirates may need to raise cash if air travel does not pick up

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved