Emirates to launch insurance for stranded passengers amid Middle East travel slump

One of the world's largest airlines, Emirates, is introducing an insurance product to guarantee passengers' return as demand for travel to the Middle East shrinks due to the prolonged war.

According to the British daily Financial Times (FT) on the 11th (local time), Tim Clark, President of Emirates, announced plans to launch its own insurance product that guarantees the return of passengers traveling to and from the Middle East.

The core of this product is to support passengers' return even if flight operations are disrupted due to armed conflict.

If necessary, it is planned to include measures to help passengers return by utilizing not only Emirates flights but also flights from other airlines.

Currently, as many countries are advising against travel to the Middle East, a considerable number of travelers are experiencing difficulties in purchasing travel insurance, which acts as a hurdle to the recovery of travel demand in the Middle East.

Clark explained, "One of the big concerns (for passengers) is being stranded abroad and unable to return," and said that a reasonably priced insurance product would be launched.

Despite the unstable situation in the Middle East, Emirates is showing a relatively rapid recovery.

The average aircraft occupancy rate is currently around 75%, and demand is reportedly strong, with some London routes almost fully booked.

However, unlike Emirates' recovery, the outlook for the aviation industry as a whole is not entirely bright.

As jet fuel prices soar due to the prolonged Middle East war, major airlines are considering significantly reducing their winter flight plans.

According to the FT, Italy's state-owned airline ITA has stated that in the worst-case scenario, it may reduce its operating capacity by up to 20% during the winter season from October to April next year.

Turkish Airlines is also considering route reductions or suspension of flights to some destinations if high oil prices continue.

The International Air Transport Association (IATA) has lowered its forecast for the global aviation industry's net profit this year from $43 billion (approximately 65.7 trillion won) to $23 billion (approximately 35.1 trillion won).