Thursday 17 February 2022

Emirates CEO Says Oil Prices, Ukraine Tensions Threaten Aviation Recovery - Bloomberg

Emirates CEO Says Oil Prices, Ukraine Tensions Threaten Aviation Recovery - Bloomberg

A nascent recovery in the aviation industry could be derailed by higher fuel prices and potential conflict in Ukraine, according to the longtime head of Gulf carrier Emirates.

“A war in Europe, aggression over there will have very disruptive effects on the industry,” Emirates President Tim Clark told Bloomberg TV on Thursday. The repercussions would go beyond any conflict itself, to “what happens after that -- in terms of sanctions, possible closures of airspace.”

Russia has assembled an estimated 150,000 troops near the border of Ukraine, prompting warnings from the U.S. and diplomatic efforts to avoid war. Russia has repeatedly denied any plans to invade.

The tension has been a factor in a more than $20-a-barrel rally in Brent crude prices since early August. Oil, now hovering just below $100 a barrel, is a headwind for the aviation industry, raising fuel costs and forcing airlines to increase ticket prices, Clark said.

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