Dubai carrier Emirates issued over $517 million in refunds in past two months

Dubai’s Emirates has resumed passenger services to more than 50 destinations this July. (AFP file photo)
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Updated 02 July 2020

Dubai carrier Emirates issued over $517 million in refunds in past two months

  • Dubai-based carrier is operating a limited numbers of flights on a reduced network after the coronavirus pandemic

DUBAI: Emirates, one of the world’s biggest long-haul airlines, has processed close to 650,000 refunds over the past two months, refunding over $517 million, it said on Thursday.
The Dubai-based carrier is operating a limited numbers of flights on a reduced network after the coronavirus pandemic brought global aviation to a near halt this year.
Emirates expects to process more than 500,000 refunds in the next two months, Chief Commercial Officer Adnan Kazim said in a statement.


Bailout will keep Air France-KLM afloat for less than year: CEO

Updated 48 min 56 sec ago

Bailout will keep Air France-KLM afloat for less than year: CEO

  • ‘If we base it upon the past few weeks, it is clear that the recovery in traffic will be slower than expected’
  • Governments are coming under pressure to tie airline bailouts to environmental commitments

PARIS: Bailouts provided to Air France-KLM by the French and Dutch governments will keep the airline flying less than a year, its CEO Benjamin Smith said Monday and evoked the possibility of injecting new capital.
In an interview with the French daily l’Opinion, Smith also warned that calls for airlines to contribute more to fight climate change could be catastrophic for their survival which is already under threat due to the coronavirus pandemic.
When countries imposed lockdowns earlier this year to stem the spread of the coronavirus airlines faced steep drops in revenue that have claimed several carriers.
A number of countries stepped in with support, including France which provided $8.2 billion to Air France and the Netherlands which received a $2.9 billion package.
“This support will permit us to hold on less than 12 months,” said Smith.
The reason is that air traffic is picking up very slowly as many northern hemisphere countries are now fearing a second wave of infections.
“If we base it upon the past few weeks, it is clear that the recovery in traffic will be slower than expected,” according to Smith, who said when the bailout was put together the airline was expecting a return to 2019 levels only in 2024.
Smith said discussions were already underway with shareholders on shoring up the airline group, and steps would be taken before the next regular annual meeting in the second quarter of next year.
“One, three or five billion euros? It is too early to put a figure on a possible recapitalization,” he said.
The airline group had $12.12 billion in cash or available under credit lines.
Major shareholders include the French government with a 14.3 percent stake, the Dutch government at 14 percent, as well as Delta and China Eastern airlines which each hold an 8 percent stake.
Governments are coming under pressure to tie airline bailouts to environmental commitments.
One proposal that has come from a citizen’s convention convoked by President Emmanuel Macron would cost airlines an estimated $3.6 billion.
Smith said the imposition of environmental charges on the industry would be “irresponsible and catastrophic” for Air France-KLM.