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Emirates airline boss Tim Clark has struck a defiant tone amid the implications of the Iran war on air travel, expressing confidence that the Dubai company is more than capable of dealing with the fallout.
The airline is banking on its history of rebounding quickly from crises, and the appeal of Dubai, the tourism and commercial hub of the Middle East, the president of the world's biggest long-haul carrier said at the Centre for Aviation's Airline Leader Summit in Berlin on Thursday.
“What we have found is that whenever we've been through these traumas before, the strength of demand [remains] so strong,” Mr Clark said. Emirates airline would become the “most profitable airline” by the end of 2026 despite a quiet March, he added.
He also brushed off concerns about jet fuel shortages for Emirates. The effective closure of the Strait of Hormuz, through which about a fifth of the world's oil shipments pass, has halted exports to airlines in other countries around the world.
“Frankly, we're not that concerned, [as] we've got adequate supplies over here [in the UAE]. We produce and refine our own Jet A-1 fuel,” Mr Clark said, referring to the kerosene-type fuel commonly used in civil and military aircraft. The UAE is Opec's fourth-biggest oil producer and among the top 10 globally.
“There is no clear resolution at the moment, but there is a history of our ability to restore operations fairly rapidly,” he said. “We've earned our skills probably more than any other airline in the world now because we've been subjected to all sorts of things over the last 20 to 30 years.”
Air travel to and from the Middle East was significantly hit after the US and Israel began their offensive against Iran on February 28, forcing the closure of airports and airspace. Operations were gradually reintroduced and have now been largely restored, but some restrictions remain.
Emirates, whose fiscal year ends in March, reported last November that it posted a 13 per cent increase in record half-year profits after tax to Dh9.9 billion ($2.7 billion) amid “strong and sustained” travel demand across regions that, also at that time, withstood geopolitical turbulence.
The airline recorded revenue of Dh65.6 billion, up 6 per cent year-on-year, on “unabated” travel demand, especially for premium cabins.
Mr Clark's sentiment mirrors that of Dubai Airports chief executive Paul Griffiths, who in March said aviation would bounce back “very quickly” – reinforcing his stance in February that geopolitical tension in the Middle East has a short and limited impact.
