Airlines could be forced out of business if the price of oil does not drop soon, according to Emirates president Tim Clarke.
Clarke believes the price needs to drop to somewhere between $60 and $80 a barrel to lift the burden on airlines.
He revealed that fuel had become 43% of Emirates’ operating cost, up from 12% a decade ago.
Clarke said governments imposing taxes on air travel, especially in Europe, would present further challenges for airlines.
He said: “It seems governments are going for the low hanging fruit at the moment to plug holes in their exchequers.
“We have had to deal with a patchwork quilt of global traumas but it has been a good year tempered by an astronomical rise in fuel costs.”
Clarke stressed the importance of keeping the airline versatile despite its size in order to be able to alter the movement of the fleet when unforeseen circumstances arise.
On the consolidation the European and US markets he said: “I am not convinced this is the right way. I’m not sure the synergies expected will come about.”