Regional unrest to affect Emirates' profitability
Emirates President Tim Clark stated regional unrest in Egypt and Tunisia will affect the carrier's financial results after demand dropped in recent weeks across its worldwide network (The National/Arabian Aerospace/Dow Jones, 11-Feb-2011). However, Mr Clark stated the carrier is still expected to post a robust profit for the financial year ended 31-Mar-2011. The carrier added that load factors have declined to 75% compared with the 82% typical at this time of year. He added that if demand remained suppressed, the airline would reallocate its capacity from the affected countries to higher-demand areas. Mr Clark added that business travel has declined across the affected countries, which include Egypt, Tunisia and Yemen, while Chinese business and tourist arrivals into the region have "disappeared".
Emirates: "The effect on the seat factor as a result of the unrest in the Arab world has been measurable the last six weeks. It's a pity because it's been a very strong year for us. In April we'll be in good shape," Tim Clark, President. Source: The National, 11-Feb-2011.