Airline businesses are facing economic challenges as the lockdown continues all across the world. It has not only caused a decline in revenue but also an increase in overhead expenses. Airlines also have the pressure to return the payment for tickets books before or during the coronavirus pandemic accelerated. Emirates, a Dubai based airline known for its luxuries travel and hospitality is stuck in the same spiral of coping up with the aftermath of grounded flights like other airlines. They are using cash reserves to process refunds for customers.
“We are dipping into our cash reserves by being proactive in processing refunds, but it is our duty and responsibility,” says Tim Clark, President of Emirates. The Dubai-based carrier said it is ramping up the capacity to handle 150,000 refunds each month compared to 35,000 before the coronavirus outbreak, with about half-a-million requests still pending. The airline plans to clear its backlog by the beginning of August.
Emirates is now offering two other choices to customers: Hold expired tickets for up to 24 months or to swap the unused portion of tickets for a travel voucher equal to the amount charged for their initial reservation. According to the International Air Transport Organization, the global airline industry is forecast to burn through as much as $61 billion in the second quarter