As U.S. President Donald Trump imposes broad tariffs, a downturn in the airline industry is expected, while Middle Eastern airlines receiving support from so-called "oil money" are pursuing large-scale aircraft purchases to expand their operations.
According to Bloomberg News on the 29th (local time), Emirates Airlines, the flagship carrier of the United Arab Emirates (UAE), continues to expand its global operations with Dubai International Airport as its hub, and is currently in negotiations for additional aircraft orders. Specific details are expected to be announced at the Dubai Airshow, which will be held at the end of this year.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates Airlines, noted in an interview with Bloomberg TV on that day, "We are in negotiations" and added, "We may be able to order more aircraft."
Emirates Airlines has already placed orders for Airbus SE A350 aircraft and Boeing 777X aircraft. In particular, more than 200 Boeing 777Xs have been ordered, and deliveries are expected to begin around the end of next year. A350 is anticipated to introduce about 12 units by the end of this year.
Bloomberg explained, "To address aircraft delivery delays, Emirates is spending about $5 billion (approximately 7 trillion won) to retrofit retired Airbus A380s and older Boeing 777 aircraft."
Fly Dubai, a subsidiary of Emirates Airlines, is also in the process of purchasing up to 300 aircraft. In February, Bloomberg reported, "Fly Dubai plans to purchase at least 200 aircraft and 100 option aircraft." This move comes after Fly Dubai recorded its largest operating profit last year.
At that time, Emirates Airlines and Etihad Airways, known as one of the "big three Middle Eastern airlines," were expected to order up to 40 large aircraft, while Qatar Airways was reported by Bloomberg to place an order for about 230 large aircraft within a few months.
The actions of the Middle Eastern airlines contrast with U.S. airlines, which anticipate an industry downturn as a result of the "tariff war" initiated by President Trump and have begun cost-cutting measures. Southwest Airlines, based in Dallas, Texas, has withdrawn its performance outlook for this year and next due to ongoing uncertainties surrounding tariff policies.
Bob Jordan, CEO of Southwest Airlines, stated, "Regardless of whether the U.S. economy enters a technical recession, the U.S. airline industry has already entered a downturn." Southwest Airlines has started charging additional fees for various services to overcome poor performance and has been laying off 1,750 employees since the beginning of this year.
Middle Eastern airlines seem to have avoided the impacts of the tariff war. Chairman Sheikh Ahmed stated, "There has been no confirmed pattern of people not flying or canceling reservations," predicting that Emirates Airlines will show positive performance over the next two years.