Long buoyed by high-flying Emirates, Dubai now shares its woes
Emirates Airline powered Dubai’s rise from desert backwater to teeming Mideast metropolis, making the city one of the world’s biggest intercontinental hubs and generating a yearslong economic boom. But now, the coronavirus pandemic and the economic devastation it has wrought have forced the first major downsizing for an airline that has weathered Middle East conflicts and oil-market shocks. As a result, the state-owned carrier’s woes are tearing through Dubai’s economy. The airline’s parent company, one of Dubai’s biggest employers, has slashed tens of thousands of jobs from its 100,000-strong workforce after the pandemic halted much of global air travel, a fall from grace for an airline that long outmuscled competitors in the U.S. and Europe for landing rights and passengers. That has in turn driven an exodus of Dubai-based expatriates linked to the airlines, shrinking spending at restaurants, bars and even private schools. “It is extremely difficult for the hospitality sector...