Dubai: Dubai Aerospace Enterprise (DAE) reported a 10 per cent fall in its full-year 2020 revenue as the pandemic weighed on airlines’ demand for aircraft.
The aircraft lessor posted a revenue of $1.3 billion (Dh4.78 billion) in the year ended December 31, 2020, compared to $1.44 billion (Dh5.29 billion), a year earlier. Profit before tax stood fell nearly 40 per cent year-over-year to $250.2 million (Dh919 million).
“2020 was an extraordinary year with the pandemic impacting air traffic demand and airlines’ need for aircraft,” said Firoz Tarapore, Chief Executive Officer of DAE. “DAE has always maintained one of the most diversified aircraft portfolios of any major lessor, with approximately three aircraft on lease to a customer on average”
DAE, which utilized 98.2 per cent of its fleet in 2020, said it expects to demand to improve this year.
“As we look to 2021, we remain optimistic about a snapback in air travel demand starting in summer 2021 resulting from ramped up deployment of existing vaccines, development of new vaccines and the favorable impact of measures currently in place in impacted areas to contain the spread,” said DAE’s Tarapore.
“Longer term, we remain very bullish that air traffic demand will revert to its historic trajectory of growing at twice the rate of GDP growth,” he added.