UAE's Emirates, Etihad to resume transit passenger flights in boost for jet fuel demand

The UAE's Emirates and Etihad Airways, the country's two biggest carriers, plan to resume transit flights this month, potentially offering a boost to jet fuel demand as coronavirus-related travel restrictions are eased.

Emirates, the world's biggest operator of long-haul flights in 2019, will offer flights starting June 15 between Dubai and 16 cities, it said in a statement on June 4.

These cities are: Bahrain, Manchester, Zurich, Vienna, Amsterdam, Copenhagen, Dublin, New York, Seoul, Kuala Lumpur, Singapore, Jakarta, Taipei, Hong Kong, Perth and Brisbane.

Travelers on Emirates can also fly between Asia Pacific, Europe and the Americas via its hub at Dubai International Airport, it said.

Etihad Airways, the second-largest carrier in the UAE, on June 10 will start linking 20 cities in Europe, Asia and Australia via its hub in Abu Dhabi, the airline said in a statement on June 4.

The seven-member federation suspended most passenger flights in late March, except for cargo and repatriation flights, but in April started gradually easing restrictions.

RELAXED RESTRICTIONS

The UAE announced on June 3 plans to allow the transfer and transit of passengers from other international destinations to some of it airports amid continued relaxation of coronavirus-related travel restrictions.

"The decision includes Abu Dhabi International Airport, Dubai International Airport, and Sharjah International Port, and covers Etihad Airways, Emirates, flydubai, and Air Arabia," said Saif al-Dhaheri, spokesman of the National Emergency Crisis and Disasters Management Authority, state-run WAM news agency reported on June 3.

Dubai-based fly dubai is a low-cost carrier that has codeshare agreements with Emirates, while Air Arabia is another no-frills airline based in Sharjah, the country's third-largest emirate.

JET FUEL DEMAND

Resumption of transit 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.

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, the world's biggest operator of A380 and Boeing 777 fleet.

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.

Emirates on May 21 started regular outbound flights to nine destinations for the first time since the UAE suspended most passenger flights in late March.

Both Emirates and Etihad Airways are also resuming a limited number of inbound flights to return UAE residents stranded abroad.

(Recasts headline, updates with Emirates)