Dubai airport repairs to cost Emirates $27 mill in lost revenue
Emirates said that it will reduce flights over multiple destinations during the period of repairs.
April 23, 2014
Emirates Airline said it would take a Dh1 billion (US$ 27 million) hit to revenue for the duration of runway repairs at Dubai International Airport. “Emirates Airline will continue to serve all of its worldwide destinations during the 80-day period of runway upgrading works at Dubai International starting May 1,” the carrier said.
The repairs take place from May 1 to July 20. Emirates said it would “reduce flights to over 40 destinations and change timings on some of its flights”.
With a Dh1bn hit to absorb, news sources say that it is likely that there will be added pressure on Emirates in the second half of the year to recoup that cost – whether by fare sales or other offers. “Emirates will be keen to offset lost revenue during the runway works as quickly as it can to avoid burning cash,” Saj Ahmad, the chief analyst at StrategicAero Research said.