Emirates president Tim Clark said Brexit will not have a negative impact on travel demand or the airline
Emirates Group’s Dnata airport services unit’s exposure to bankrupt holiday operator Thomas Cook “is not a small amount”, according to Emirates president Tim Clark.
“We have to take it in the first half,” Clark said during an aviation conference in Dubai on Monday, without divulging exact figures.
Thomas Cook was a customer for services such as ground-handling and catering before filing for bankruptcy last month.
The bankruptcy of the company – the world’s largest travel company – led to over 22,000 jobs being lost around the world.
“I had earlier said that there were some airlines, who were operating at the margins of profitability, and that their business models will not be sustainable,” Clark said.
Additionally, Clark said that Emirates earnings for the current fiscal year – which will be reported next month – will remain better than the same period last year due to the airline’s decreased capacity and rationalised routes caused by a weakening global economy that had led to a “flattening” in the airline’s growth.
In his remarks, Clark added that he does not believe the looming spectre of the UK’s exit from the European Union will have any negative impact on travel demand or the airline.
“Paradoxically, since Brexit started, the demand on Emirates to the UK has been growing at six to eight percent,” he said. “I am optimistic that the momentum will continue even if the UK leaves the EU.”