Emirates Airline: No announcement made on coronavirus pandemic job cuts

An Emirates Airline Airbus A380-800 plane takes off from Dubai International Airport last year. (Reuters/File)
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Updated 17 May 2020

Emirates Airline: No announcement made on coronavirus pandemic job cuts

  • Dubai-based carrier conducting review of 'costs and resourcing'

DUBAI: Emirates Airline said on Sunday that no announcement had been made on job cuts after a report said the group planned to make 30,000 people redundant.

An Emirates spokeswoman told Reuters that no public announcement has been made yet by the company regarding “redundancies at the airline,” but that the company is conducting a review of “costs and resourcing against business projections.”

“Any such decision will be communicated in an appropriate fashion. Like any responsible business would do, our executive team has directed all departments to conduct a thorough review of costs and resourcing against business projections,” the spokeswoman said.

The company was responding to a Bloomberg report quoting unnamed sources that said Emirates was planning to cut its work force by about 30 percent, or 30,000 people.

Airlines around the world have been severely hit by the coronavirus pandemic.

Emirates stopped regular passenger flights in March, but last week announce it would resume scheduled passenger flights to nine cities from May 21.

It will also offer connections from its hub in Dubai for travelers moving between the UK and Australia.

Emirates said earlier this month it would raise debt to help it through the pandemic.

The airline, one of the world’s biggest long-haul flight operators, reported a 21 percent rise in profit for its financial year that ended on March 31, but said the pandemic had hit its fourth quarter performance.

*With Reuters


Oil giants’ production cuts come to 1m bpd as they post massive write-downs

Updated 10 August 2020

Oil giants’ production cuts come to 1m bpd as they post massive write-downs

  • Crude output worldwide dropped sharply after the market crashed in April

LONDON: The world’s five largest oil companies collectively cut the value of their assets by nearly $50 billion in the second quarter, and slashed production rates as the coronavirus pandemic caused a drastic fall in fuel prices and demand.

The dramatic reductions in asset valuations and decline in output show the depth of the pain in the second quarter. Fuel demand at one point was down by more than 30 percent worldwide.

Several executives said they took massive write-downs because they expect demand to remain impaired for several more quarters as people travel less and use less fuel due to the ongoing global pandemic.

Of those five companies, only Exxon Mobil did not book sizeable impairments. But an ongoing reevaluation of its plans could lead to a “significant portion” of its assets being impaired, it reported, and signal the elimination of 20 percent or 4.4 billion barrels of its oil and gas reserves.

By contrast, BP took a $17 billion hit. It said it plans to recenter its spending in coming years around renewables and less on oil and natural gas.

Weak demand means oil producers must revisit business plans, said Lee Maginniss, managing director at consultants Alarez & Marsal. He said the goal should be to pump only what generates cash in excess of overhead costs.

“It’s low-cost production mode through the end of 2021 for sure, and to 2022 to the extent there are new development plans being contemplated,” Maginniss said.

London-based BP has previously said it plans to cut its overall output by roughly 1 million barrels of oil equivalent (BOEPD) by the end of 2030 from its current 3.6 million BOEPD.

Of the five, Exxon is the largest producer, with daily output of 3.64 million BOEPD, but its production dropped 408,000 BOEPD between the first and second quarters. The five majors, which include Chevron Corp, Royal Dutch Shell and Total SA, also cut capital expenditures by a combined $25 billion between the quarters.

Crude output worldwide dropped sharply after the market crashed in April. The Organization of the Petroleum Exporting Countries agreed to cut output by nearly 10 million barrels a day to balance out supply and demand in the market.