Emirates rebound faces pilot shortage
Shortfall of 100 to 150 pilots compels airline to pare frequencies to destinations, top executive says
Emirates said a rebound in earningsover the past year faces a challenge this summer as a pilot shortage forces the Dubai-based carrier to trim frequencies.
Emirates, the world’s biggest long-haul airline, said a rebound in earnings over the past year faces a challenge this summer as a pilot shortage forces the Dubai-based carrier to trim frequencies.
Sales that stumbled after the low oil price clipped travel in Gulf economies continued to pick up in the second half through March 31, President Tim Clark said Wednesday in Hamburg. US demand has also rebounded from restrictions imposed early in Donald Trump’s presidency in the US.
The revival will come under pressure as a shortfall of 100 to 150 pilots compels Emirates to pare frequencies to destinations including Fort Lauderdale and Miami during the looming high season for global travel. Cuts will also reportedly extend to several European and Asian routes.
“We’re a tad short in pilots,” Clark said, adding that the service reductions will be short term and that crew numbers should be “alright by September or October”.
Factors including economic growth in the US and UK and high employment and rising wages in Germany continue to favour growth, he said.
While the rising oil price is boosting Gulf economies and hence local demand for travel, a 25 per cent gain over the past year presents a “challenge” for Emirates, which does not hedge, according to Clark. Prices are likely to ease though, given the supply coming into the market and barring a major geopolitical upset, he added.
Emirates is cooperating more closely than before with neighbour Etihad Airways as the Abu Dhabi carrier formulates a strategy review that may see it shrink operations following a loss of close to $2 billion (Dh7.34 billion) in 2016. The companies are “looking at all sorts of areas”, with “work going on behind the scenes”, though antitrust rules mean they can only do so much, Clark said.