Emirates to face decline in revenue after axing routes
Emirates is more likely to face a setback to its revenue this year after axing a number of routes because of imposing safety threats. But analysts say the airline should be able to mitigate the losses. The airline has suspended services to Kiev, Ukraine, and Arbil, Iraq, while also announcing it will soon avoid flying over parts of Iraqi airspace in the wake of an increasing threat posed by rising instability in the two countries. The suspension of Ukrainian services was an immediate reaction to the shooting down of Malaysia Airlines flight MH17 over eastern Ukraine last month, Gulf News reported. “Many natural routes for a carrier located in the Gulf will require re-routing and extra time. That is costly, particularly if avoiding Iraq on flights to Europe [as this] requires an additional 45 minutes per flight. That’s about a 10% increase in distance and about 5% more fuel,” said US-based analyst Ernest Arvai, chief executive of The Arvai Group, in an email.