Global trade reset could test airlines, says Emirates' Tim Clark

Dubai: As global trade dynamics shift under the weight of new tariffs and economic realignments, Emirates President Sir Tim Clark has cautioned that the aviation industry may be entering a period of heightened uncertainty.

Framing the changes as a “reset” in the global trading system, Clark, in a CNB interview recorded March 20 — ahead of Washington’s announcement of its latest global levies,  warned that the ripple effects could test the resilience of airlines worldwide, particularly as supply chains tighten and operational costs begin to rise.

However, long-haul travel demand continues to show strength despite global economic headwinds, according to Emirates President Sir Tim Clark. Forward bookings remain robust through the end of the year and into early 2026, signaling resilience in international air travel even as airlines face increasing challenges.

Clark, who has helmed Emirates for more than 20 years, acknowledged that the aviation sector is operating in an era of uncertainty shaped by complex geopolitical shifts. In the CNBC interview, he described current conditions as “uncharted territory,” noting that recent shifts in trade policy could have a profound effect on global commerce and, by extension, the airline industry.

He further suggested then the evolving trade environment marks a significant realignment—comparable in scale to the aftermath of the 2008 financial crisis—introducing potential volatility into global supply chains. These shifts, he noted, could indirectly impact Emirates, particularly due to the airline’s reliance on aircraft and components from major manufacturers such as Boeing and Airbus.

Nonetheless, Clark expressed confidence in Emirates’ capacity to adapt. “Our business model, given its global reach and operational strength, positions us well to navigate through these kinds of cycles,” he said.

While acknowledging the pressures associated with trade disputes, Clark emphasised that Emirates has weathered major disruptions in the past, including the post-9/11 travel slowdown and the Covid-19 pandemic. He views the current moment not as a crisis, but as part of a broader recalibration of international trade dynamics.

Despite retaliatory measures by countries like China targeting U.S. aerospace firms, Clark believes the industry will find ways to absorb the impact and move forward. His outlook remains cautiously optimistic, underscoring the enduring appeal of global connectivity and the pivotal role of aviation in driving it.