Dubai-based state-owned carrier Emirates has announced that it will raise debt in order to help the company weather the coronavirus crisis, the media reported.
Emirates warned that it might take up to 18 months for the aviation sector to recover from the setbacks caused by the pandemic. The company reported a 21 percent increase in profit for its financial year that ended on March 31.
It is still unclear how much debt Emirates is planning to raise.
Chairman Sheikh Ahmed bin Saeed said in a statement, “The Covid-19 pandemic will have a huge impact on our 2020-21 performance. We continue to take aggressive cost management measures and other necessary steps to safeguard our business, while planning for business resumption.”
In order to curb the spread of the coronavirus, the airline has suspended almost all of its passenger flights since March. The Covid-19 pandemic, which originated in the Chinese city of Wuhan, has severely impacted the global aviation sector.
In order to deal with the financial losses, the carrier has stopped recruiting new employees. It has also asked its staff members to take a month of unpaid leave as flight cancellations heavily hamper its business.
Recently, the International Air Transport Association (IATA) revealed that the global aviation sector could lose around $314 billion in revenue due to the coronavirus pandemic.
Last year, Emirates signed an agreement with Boeing to purchase 30 Boeing 787 Dreamliner for $8.8 billion. The aircraft will be the smaller Boeing 787-9 Dreamliner variant. The delivery process for Boeing’s Dreamliner aircraft ordered by Emirates will start in 2023 and will continue for the next five years.