Here’s How Big of a Hit Emirates Took From the Travel and Electronics Bans

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

While a big drop in ticket sales could be an airline’s own doing, more often it’s external factors that are to blame. In the case of Emirates Airline, we learned Monday that two recent US initiatives have had a tremendous impact on the carrier’s revenue, specifically on flights to and from the United States.

We’re talking about the US travel ban, and the electronics ban that followed. The former blocked passengers from specific Muslim-majority countries from flying to the United States, and the carry-on electronics ban affected all travelers on certain US-bound nonstop flights from the Middle East and North Africa. For many travelers, going without a laptop on a 12-hour flight is unthinkable, and, as a result, business and leisures flyers alike ended up booking connecting flights, or bypassed affected Middle East airports entirely, going so far as to book travel on Air India, instead.

According to Emirates President Sir Tim Clark, who spoke at the APEX Expo in Long Beach on Monday, both bans had a notable negative impact on ticket sales.

“Taken together, it diminished our demand out of the US and into the US by about 15 to 20%, which of course is a major problem for us,” Clark said. “The interesting thing about it, particularly with the Muslim ban, it had a halo effect in terms of perception for all people in the area, whether they were Hindu, Sikh, Buddhist or whatever. They all believed that they were going to be subjected to very difficult entry and visa requirements. So it sort of expanded into a lot of our West Asian markets — India, Pakistan, Bangladesh, Sri Lanka, Iran of course.”

So travelers who weren’t even subjected to the ban ended up avoiding travel to the US, which obviously caused even more damage to Emirates and other Middle Eastern carriers. As a result, Emirates ended up having to trim some service, and, understandably, passenger loads have likely yet to recover.

The Business Platinum® Card from American Express OPEN

LIMITED TIME OFFER. Aside from the 100,000 points welcome bonus (available until 8/8/18), Amex recently made huge improvements to the Business Platinum Card, including the fact that you will now earn 50% more points on purchases of $5,000 or more, earn 5x on flights and eligible hotels at Amextravel.com and cardholders will receive a $200 airline fee credit each year.

Apply Now
More Things to Know
  • Limited Time Offer: Earn up to 100,000 Membership Rewards® Points.
  • Earn 50,000 Membership Rewards® points after you spend $10,000 & an extra 50,000 points after you spend an additional $15,000 all on qualifying purchases within your first 3 months of Card Membership. Offer ends 8/8/18.†
  • Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com.
  • Get 50% more Membership Rewards® points. That's 1.5 points per dollar, on each eligible purchase of $5,000 or more. You can get up to 1 million additional points per year.
  • 35% Airline Bonus: Use Membership Rewards® Pay with Points for all or part of a flight with your selected qualifying airline, and you can get 35% of the points back, up to 500,000 bonus points per calendar year.
  • You can also receive 35% points back on all First and Business class flights, with all airlines available through American Express Travel.
  • You can enjoy access to The American Express Global Lounge Collection℠ offering access to the most lounges across the globe, when compared with other U.S. credit card offerings. As of 11/2017
  • Terms Apply
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
N/A
Annual Fee
$450
Balance Transfer Fee
See Terms
Recommended Credit
Excellent Credit
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.