Slow recovery in long-haul travel weighs heavily on Emirates, Lufthansa
Live MintEmirates Group posted a $6 billion annual loss and Deutsche Lufthansa AG said it was cutting another 10,000 jobs, as two of the world’s biggest international airlines braced for a slow resumption of long-haul travel. In the first eight weeks of the pandemic, Emirates suspended its entire commercial passenger operation, which uses two of the world’s biggest aircraft types, the Airbus A380 and Boeing Co.’s 777, to ferry passengers to far-flung destinations via its hub in Dubai. Emirates, the world’s biggest airline by international travelers before the pandemic, said Tuesday it had cut costs by about 7.7 billion dirhams, equivalent to $2.1 billion, during the year that ended in March by renegotiating its commercial contracts with suppliers, slimming down its internal processes and consolidating operations. The cuts come as Lufthansa said it is preparing to raise new capital to help repay state aid it took at the start of the crisis to help weather the pandemic.
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