Emirates is working to contain the impact of rising jet fuel prices on airfares, the airline said Tuesday, as disruptions to global energy supplies push fuel costs higher. Adnan Kazim, Emirates’ Deputy President and Chief Commercial Officer, said the Dubai-based carrier has hedged about half of its fuel requirements, giving it protection from part of the recent increase.
Emirates Is Half Protected From Rising Fuel Prices
Kazim said Emirates is “well-hedged” against rising jet fuel prices and is working to limit the effect on ticket prices.
“I would say we’re half protected and half open to the market in terms of the position,” Kazim said in an interview with Reuters.
The airline’s current fuel position means about 50% of its requirements are protected through hedging arrangements, while the remaining 50% is exposed to market prices. Emirates previously said in May that its fuel hedging position extends through the 2028-29 financial year. The airline also said it had secured sufficient fuel supplies to maintain its operations and work toward restoring capacity affected by earlier disruptions.
Oil Prices Rise as Disruptions Continue
The comments come as the Iran war continues to affect fuel markets and aviation operations across the region. Brent crude was trading close to $110 a barrel, according to Reuters, as disruptions to energy infrastructure and shipping routes continued to affect global oil supplies.
Emirates is among the Gulf carriers that have been managing the effects of the disruptions on their operations. The airline reported Monday that it operated at 93% of its pre-disruption capacity during the summer and carried more than 8.6 million passengers in July and August. The airline also reported increased winter bookings on several routes and said it plans to add capacity on existing services, alongside the launch of flights to Helsinki in October.
As fuel prices remain elevated, Emirates is continuing to monitor its exposure to the market while maintaining its current flight operations.
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