Emirates to cancel majority of passenger flights and cut staff wages after coronavirus-related slowdown

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Stephanie Cockroft22 March 2020

Emirates is suspending the majority of its passenger flights after a dramatic slowdown caused by the global coronavirus outbreak.

The company, one of the biggest airlines in the world, said the move - a key indication of the impact of the virus on the aviation industry - would come into force on Wednesday.

Emirates earlier announced a suspension of all passenger flights, but reversed that decision after receiving requests from Governments and customers to support the repatriation of travellers.

It will now reduce its passenger flight destinations from 145 to 13, and will still fly to the UK, the US, Japan, Australia and Canada.

It will also slash salaries for the majority of its employees for three months but will not cut jobs.

The state-owned carrier stressed it will continue to operate cargo flights through its fleet of Boeing 777 freighters for the transport of essential goods, including medical supplies across the world.

Airlines around the world are struggling to cover their costs and pay salaries with their fleets grounded and countries shutting their borders to travellers.

In the Middle East, airlines have lost more than seven billion dollars (£6 billion) in revenue as of March 11, according to the International Air Transport Association.

The group said 16,000 passenger flights have been cancelled in the Middle East since the end of January.

Emirates's hub in Dubai, which is the world’s busiest international airport, has seen major disruption as a result of Covid-19. The United Arab Emirates has all but closed its borders to travellers.

In a statement released on Sunday, Emirates said it tried to maintain passenger flights “for as long as feasible” to help travellers return home amid all the travel bans, restrictions and lockdowns.

Emirates Group chief executive and chairman Sheikh Ahmed bin Saeed Al Maktoum described the situation as “an unprecedented crisis” and said “the world has literally gone into quarantine” due to the virus, which has infected more than 300,000 people around the world.

Mr Al Maktoum said the company was doing well financially at the start of the year but the virus “has brought all that to a sudden and painful halt over the past six weeks”.

“We find ourselves in a situation where we cannot viably operate passenger services until countries reopen their borders and travel confidence returns,” he said.

The company, which also operates an airport ground services company called dnata at locations around the world, had already urged employees to take paid and unpaid leave.

To save costs further, it said it is temporarily reducing the basic salaries of the majority of Emirates Group employees for three months, with cuts ranging from 25 to 50 per cent.

The company said employees will continue to be paid other allowances during this time. Junior-level employees will be exempt from the basic salary reduction.

The president of Emirates, Tim Clark, and the president of dnata, Gary Chapman, will take a full basic salary cut for three months.

“We want to avoid cutting jobs,” Mr Al Maktoum said. “When demand picks up again, we also want to be able to quickly ramp up and resume services for our customers.”

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