Emirates says travel demand will not soon disappear, despite the industry struggling with the set of challenges that are causing airport turmoil ahead of the busy summer holiday season.
Tim Clark, president of a Dubai-based airline and veteran of the airline, said he “has never seen anything” like the headwinds the industry is currently facing. Still, vacationers seem reluctant to seize the opportunity for a newly reopened trip.
At the 78th Annual Meeting of the International Air Transport Association in Doha, Clark told CNBC Dan Murphy, “Short-term demand, regardless of disability, whether it’s price or airport facilities. It is unlikely that it will disappear. ” , Qatar.
The aviation industry is plagued by the worst, from labor shortages and supply disruptions to rising fuel prices, with severe delays and cancellations of weeks at some of the busiest airports in Europe and North America. Is occurring.
On Saturday, more than 6,300 flights were delayed in or from the United States, or departed from the United States, and 859 flights were cancelled. According to the flight tracking platform FlightAware.. Similarly, tens of thousands of flights have recently been suspended across Europe. 5,000 passengers At Heathrow Airport in London, cancellations are expected to occur only on Mondays.
The aviation industry has been plagued by the worst of the last few weeks, from labor shortages and supply disruptions to rising fuel prices.
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However, Clark said passengers now seem ready to pay for their post-pandemic trips financially and otherwise.
“The aviation industry had to raise prices to cover and mitigate astronomical fuel price increases, but demand remains resilient and there is no slack,” he said. Said.
Clark said it’s everyone’s guess how long it will last. He added that rising inflationary pressures, worsening costs of living, and broader socio-political concerns as a result of the war in Ukraine are all causing further headwinds for the industry.
“Will demand decline or dilute in the coming years as these key economic factors continue to have a significant negative impact on our business and the global economy,” he said.
Clark urged increased industry collaboration and coordination to overcome the peak of summer travel.
Still, he said, Emirates $ 1.1 billion loss in 2021Is expected to return to the black in 2022.
“At this point, we’re happy to say that we’re making money,” Clark said. “Unless something special happens, I think Emirates will make a profit this fiscal year.”