Emirates bets on strong China demand after COVID opening

Emirates Airline Chief Commercial Officer Adnan Kazim
says travel demand from Asia is outstripping supply.  
(Photo courtesy of Emirates Airline)

Gulf airline aims for full capacity by next March as Asia travel appetite grows

Emirates Airline says it aims to return to nearly pre-COVID capacity by next March as demand for air travel in Asia outstrips what airlines are offering.

In an interview with Nikkei Asia, Emirates Chief Commercial Officer Adnan Kazim said global travel demand is exceeding pre-COVID levels.

"We have restored 85% travel capacity in China [compared with pre-COVID], and the Chinese market can take up to five daily Emirates flights or more. We are operating at 85% capacity on our main global routes, and we aim to ramp up to 90% by summer 2023," he added.

Kazim said Emirates' operations have ramped up more slowly in Asia than Europe and the Middle East, because of the more gradual lifting of COVID restrictions in that region. Emirates is now seeing strong demand in mainland China, while Hong Kong is gradually picking up in terms of capacity recovery for the carrier.

"Airline competition in Asia is healthy and strong, and there is more demand in Asia than what airlines are offering," he said.

Emirates operates 440 daily flights, or 3,080 departures per week, from its hub in Dubai, equating to 1.3 million seats each week.

"By the end of this financial year [on March 31, 2024] we aim to operate at almost full capacity and full flight frequency," Kazim said.

The carrier has been serving China for nearly two decades and has established its presence in the Chinese market through strategic partnerships. It offers passengers connectivity to eight domestic points via Guangzhou through a codeshare agreement with China Southern Airlines, while providing customers of its partner airline with access to additional destinations in the Middle East and Africa.

Kazim said Emirates is facing higher costs -- in terms of fuel, catering, ground handling and overflight fares, or fees charged by countries to traverse their airspace -- but said the airline is trying to avoid passing on full cost increases to customers. Finding skilled workers has also been a challenge for the industry since the pandemic, he added.

Asked about plans by Gulf rival Saudi Arabia to launch long-haul carrier Riyadh Air, Kazim said Emirates' strong brand will help it maintain its market share in Asia, adding that "competition is healthy."

The executive also acknowledged that the transition to environmentally friendlier fuels is moving more slowly for airlines than other industries, saying that hydrogen is a costly option and sustainable aviation fuel still needs more testing. Emirates did not provide a time frame on when it will operate its flights using such fuels.

*Source: PATA, Level 26, Gaysorn Tower, 127 Ratchadamri Road, Lumpini, Pathumwan Bangkok 10330 Thailand communications@PATA.org