The Ukraine war and the consequent exclusion of Russia from the global economy will have long-term consequences for global aviation, said Emirates’ boss Sir Tim Clark.
“This [war] will have major manifestations of perhaps disadvantage for both sides. And this will have an impact on the industry,” he told the BBC today.
Clark said Emirates was reporting a strong demand despite the war-induced hike in oil prices, which were passed onto customers through higher fares.
“Irrespective of that, people are ready to pay the prices that we have to charge to cover this enormous increase in the fuel price,” he said while adding that low-cost carriers could take a bigger financial hit compared with legacy airlines.
Despite the war’s impact on the sector’s recovery, the 72-year-old explained last month Emirates would return to profit next year after reducing losses for the current one.
“We are in for a good set of results, we haven’t reversed it completely but we have swung it,” he told journalists during Dubai’s World Government Summit.
“We are forecasting profits next year and hopefully to pay a dividend and repay some of the equity that the government has put into the business.”
The carrier made the headlines at the end of March when it said Moscow-bound services will continue until told otherwise by the UAE Government, City A.M. reported.
“As long as the state, our owner, requires us to fly there, we will continue,” the chief executive said at the end of March.
We’ve got NGOs traveling in and out of Russia. We’ve got the diplomatic community going in and out of Russia…so all we’re doing is being an enabler, facilitator, without taking a political position on this for the time being.”