COVID-19 impact: Dubai sovereign fund ICD not taking impairment on Emirates airline 2020 losses

Emirates airline through the years: from flagship airline to pandemic champion
Emirates airline swung into a loss for the last financial year, totalling Dh20.3 billion. Image Credit: Screengrab

Dubai: The government-owned Investment Corporation of Dubai (ICD), the emirate’s sovereign fund, is forecasting Emirates airline, which it owns, to reach 90 per cent of its pre-COVID-19 revenues in the 12 months leading up to March 31, 2024.

In a significant development, ICD has not taken any impairment charges related to Emirates airline’s cash generation. Emirates airline recently reported 2020 losses of Dh20.3 billion – its first in more than 30 years.

Steep loss for 2020

ICD recorded revenues of Dh136.10 billion for 2020, down from Dh228.01 billion as the pandemic impacted on all key asset categories. This forced ICD to report a loss of Dh15.5 billion against a Dh24.99 billion profit in 2019. (A big positive was in bringing down cost of revenue to Dh118.25 billion against Dh180.59 billion a year ago.)

Its assets grew, however, to Dh600.79 billion from Dh580.21 billion in 2019.