The Dubai based airline, Emirates is planning to let go of some more employees. The airline has made another round of redundancies after following a tough few months for the group.
The airline has not provided an exact figure of how many jobs will be reduced. Yesterday, hundreds of pilots and cabin crew lost their jobs and more will be leaving today. The airline took these steps to preserve cash. As the airline had to bear losses caused by the coronavirus pandemic.
Speculations are that this week The Airbus A380 and Boeing 777 pilots will be laid off. The company told the employees who lost their jobs that their positions had been made redundant.
However, Emirates has been suffering losses since March, because of the coronavirus outbreak, which has caused the airline industry to a virtual halt.
Emirates outgoing president Tim Clark said that it would take up to four years to resume flights to all the destinations the airline flew to prior to the pandemic.
Air Travel Globally Down
Consequently, airlines had to bear severe financial losses because governments globally imposed strict cross-border travel restrictions.
Latin American air carrier LATAM filed for bankruptcy. Similarly, American Airlines and Delta have slashed thousands of jobs.
However, Emirates a subsidiary of the Emirates Group is in a financially stable position. The airline showed a full-year profit of $287.5 million from last year to March 31. Whereas, its 32nd consecutive year of profit for the Emirates Group.
Unemployment Around The World
New Economics Foundation Think tank released a new report mentioning, that the UK airline sector will encounter a lot of job losses as it did in the 1980s in its coal industry.
The report states that this pandemic will cause 124,000 people to become unemployed in both the aviation industry and the supply chain.
Employees earning low or on contracts are the ones most at risk of losing their jobs. As there is a huge number of reductions in customers and flights, this will be the worst financial year in history for airlines to predict the International Air Transport Association.
It believes that the sector’s revenues could drop by as much as half in 2020 to $419 billion. However, losses could accelerate to $84 billion this year before dropping to $16 billion in 2021. By contrast, airlines lost $31 billion during the period of the global financial crisis.
IATA’s chief executive, Alexandre de Juniac, said that there is no match for the crisis the industry is currently experiencing.
He also warned that the financial relief provided to airlines has caused their total debts to soar to more than half a trillion dollars.