/Dnata hit by Thomas Cook failure

Dnata hit by Thomas Cook failure

Published on Monday, November 11, 2019

Dnata has reported a drop in half-year profits and has attributed some of the decline to the failure of Thomas Cook.

Overall profit for Dnata, the travel, ground handling and catering division of Emirates Group, was down 64% to AED 311 million (US$ 85 million).

In a statement, the company said: “Dnata’s half year profit for 2019-20 was further impacted by the bankruptcy of Thomas Cook, one of its major customers for dnata’s travel and catering businesses in the UK, resulting in an impairment loss on trade receivables and intangible assets amounting to AED 84 million.”

Revenue for Dnata owner Emirates Group was AED 53.3 billion (US$ 14.5 billion) for the first six months of 2019-20, down 2%, mainly due to planned capacity reductions during the 45-day Southern Runway closure at Dubai International airport (DXB), and unfavourable currency movements in Europe, Australia, South Africa, India, and Pakistan.

Profitability was up 8% compared to the same period last year, with the Group reporting a 2019-20 half-year net profit of AED 1.2 billion (US$ 320 million).

Emirates Airline and Group chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum called the group performance ‘steady and positive’.

He said: “The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months with stiff competition adding downward pressure on margins.

As a Group we remain focussed on developing our business, and we will continue to invest in new capabilities that empower our people, and enable us to offer even better products, services, and experiences for our customers.” 

Story Image

Original Source