UAE's Emirates, Etihad boost passenger flights in potential boon to jet fuel demand

Emirates, the world's largest operator of long haul flights in 2019, and Abu Dhabi-based Etihad are increasing passenger flight routes gradually starting later in June in a potential boost to global jet fuel demand as coronavirus-related travel restrictions are eased.

Emirates, the world's biggest operator of A380 and Boeing 777 fleet, will offer scheduled flights for travelers to 10 more cities, bringing the total to 40, it said in a June 18 statement. The cities include: Colombo (from June 20), Sialkot (June 24), Istanbul (June25); Auckland, Beirut, Brussels, Hanoi and Ho Chi Minh City (all from July 1); and Barcelona and Washington DC (both from July 15).

Emirates will also add more flights in July to cities it already flies to: London Heathrow, Manchester, Frankfurt, Paris, Zurich, Madrid, Amsterdam, Copenhagen, Dublin, New York JFK, Toronto, Kuala Lumpur, Singapore and Hong Kong.

Etihad Airways, the UAE's second largest carrier, is increasing the total number of international flights throughout June to 25 destinations, "with plans to significantly increase the number of scheduled flights around the world, as international travel restrictions are lifted," it said in a statement.

The seven-member UAE federation suspended most passenger flights in late March, except for cargo and repatriation flights, but started gradually easing restrictions over the past two months.

Jet fuel demand

The addition of more flights could help lift jet fuel demand in the UAE and even globally.

Jet fuel demand in the UAE alone accounted for more than 30% of consumption in the Middle East and more than 2.5% of global jet fuel demand in 2019, according to S&P Global Platts Analytics. This figure does not include refueling abroad of the UAE 's international flights.

The UAE announced on June 3 plans to allow the transfer and transit of passengers from other international destinations at some of its airports, including Dubai International Airport, the hub for Emirates and Abu Dhabi International Airport, the home-base for Etihad.

Dubai Airports -- which manages Dubai International Airport -- does not expect passenger flights to return to pre-coronavirus levels for 18 months, its CEO Paul Griffiths said on May 14, echoing statements from the Emirates airline.

Dubai International Airport -- the world's busiest hub for international traffic in 2019 -- handled 17.8 million customers in the first quarter, a year-on-year contraction of 19.8%, due to the pandemic and the UAE authorities' suspension of most flights.