Emirates, one of the world’s largest long-haul airlines, announced on Sunday its plan of increasing debtEmirates, one of the world’s largest long-haul airlines, announced on Sunday its plan of increasing debt to alleviate the damage caused by the COVID-19 pandemic. More so, it is likely to implement more intensive measures as struggling months impend.
The state-owned airline deemed that it would take at least 18 months for the travel sector to fully recuperate. Back in March, it halted regular passenger flights due to the novel coronavirus contagion that has disrupted worldwide travel demand.
The pandemic dragged the airline’s fourth-quarter performance despite a 21% increase in its annual profit in the year ended March. This would prompt banks to raise Emirate’s debt in the first quarter to minimize the virus-driven impact on cash flows.
Chairman Sheikh Ahmed bin Saeed said in a statement that the coming months would be the most difficult in the airline’s 35-year history. Moreover, Dubai pledged to provide support for the airline should it be necessary.