Are air tickets from Dubai set to cost more?

Dubai - A strong dollar coupled with weak consumer demand has Emirates airline worried.

Strong dollar will continue to impact Emirates airline's revenues in 2016 as it's a tough year, its president Sir Tim Clark told Khaleej Times in Dubai on Tuesday.
"Look at what's happened since June to the pound, as well as the Indian rupee and dollar," Clark explained. He declined to disclose that the first six months profit would be lower than previous year but reiterated "it's tough year."
The Dubai-based airline's first six months results are expected to be announced in a couple of weeks.
The movements in exchange rates during financial year 2015-16 compared to the previous financial year had an overall negative impact of Dh4.2 billion on Emirates' operating results after offsetting gains from currency hedges.
Talking to reporters at Iata's World Passenger Symposium in Dubai he anticipates load factors between mid-70s and low 80s for the last quarter.
Tim Clark said that the airline could reduce the frequency of its flights to African cities or cut routes completely if current economic and financial challenges on the continent continue.
"There are some strong points and quite weak points. We have cut flights from certain African countries and we're reflecting on a number of destinations and having a look at where it's not worth to travel - there aren't many of those - but we could cut frequencies and possibly cities if it carries on," he explained.

Operational issues
Earlier during a media briefing, Emirates airline president touched upon a number of topics starting from security situation in Europe after terror attacks in Paris and Brussels to the impact of Brexit on the United Kingdom after a referendum to leave the European Union.
"We remain optimistic. Perhaps it is not as good as it  used to be but it will be in two to three years .," he said.

Iata urges strong partnership
Aviation industry, which contributes around $2.7 trillion in terms of economic impact, needs strong partnership among all stakeholders to embrace speed and innovation to meet the challenges of growth and rising passenger expectations.
This was stated by the International Air Transport Association (Iata) director general and chief executive officer Alexandre de Juniac during his address at the World Passenger Symposium in Dubai on Tuesday.

abdulbasit@khaleejtimes.com