Dubai – Mubasher: The recovery of both oil prices and US Dollar increased flight costs, but demand was not greatly affected, Emirates’ president Tim Clark has said.
The International Air Transport Association (IATA) has downgraded its profit forecast for carriers, basing its estimates on the growth of oil and labour costs, expecting – however— that the industry will see a 3.2% increase in yields, the Pakistani newspaper Daily Times revealed.
“We have very strong summer bookings at higher prices,” Clark told the newspaper.
The Dubai-based airline does not plan to expand its Fifth Freedom flights to the US, which would enable the Emirati carrier to operate flights between the US and other foreign countries.
In May, the US government closed an agreement with the UAE aimed at resolving claims from the three largest American carriers, which maintained that GCC airlines receive government subsidies.
The halt of Fifth Freedom seems to be the direct effect of such agreement, but Clark denied that, stating that these routes “are not central to Emirates’ business.”
