Emirates has scrapped its earnings targets and said it would be content to break even this financial year if the conflict with Iran continues. The airline, which has restored about 80 per cent of its pre-conflict services, is still carrying extra fuel and working on insurance to reassure travelers.
Tim Clark said Emirates has no intention of cutting back capacity despite the pressure. He said the return of passengers has been faster than expected, with planes about three-quarters full on average and some flights from London bursting at the seams.
Dubai traffic and Emirates capacity
The airline’s caution comes as about 40,000 people a day are transferring through Dubai’s airport, down from about 100,000 a day before the conflict. Clark said Emirates would get passengers back whether they flew on Emirates or another carrier, part of an effort to keep travel flowing through the hub.
Emirates reported a profit of $6.3 billion for the fiscal year that ended in March. Clark said the profit would have been $7 billion without the airspace closure and grounding of planes in March, tying the lower outcome directly to the disruption.
Clark on insurance and recovery
Clark said Emirates is working with insurance companies to introduce a reasonably priced product to encourage more people to fly into or through Dubai. He said the airline would fly stranded passengers home if needed, using other airlines when necessary.
Dubai’s experience during last year’s 12-day Iran-Israel war also shaped its response. Clark said, “It was clear that they had a handle on this … so we were able to operate the flights in narrow air corridors patrolled by military jets.”
The airline’s next test is whether traffic keeps rebuilding while the conflict continues. For passengers, the practical sign to watch is not a profit target, but whether Emirates keeps capacity in place and whether the new insurance offer reaches travelers soon enough to change booking decisions.
