Clark predicts challenges if oil prices stay high
Tim Clark, president of Emirates Airline, predicts problems for some airlines if oil prices stay high this year.
With oil now back above the $100 per barrel mark, Clark told ATM visitors this week that fuel costs now account for 43% of airline costs, compared to 12% a decade ago.
“If by the end of the year oil prices have reached around $130 - $140 per barrel, watch this space: There will be some casualties. I expect that airlines which will struggle particularly are those on the periphery,” he said.
Nevertheless, Clark predicted a positive future overall for big GCC airlines like his own.
Despite well publicised problems with landing rights in Canada and Germany, other markets are opening up.
Emirates, for example, has just announced the introduction of a flight to Rio de Janeiro and Buenos, starting early next year.