« Industry winners and losers in an American/US Airways merger | Main | QE3 no friend of airline stocks »

Emirates shakes up long-haul travel

The global airline that has, in recent years, been most aggressive in growing capacity and gaining market share is Dubai, UAE-based Emirates.  With compound annual capacity growth expected to be at least 10% for the foreseeable future, we believe this pace of expansion far exceeds underlying demand growth.  In recent years, UK-based British Airways and Virgin Atlantic, German Lufthansa and, especially, Australia’s Qantas have, in our judgment, been hurt the most, but there are signs that Asian stalwarts Cathay Pacific and Singapore are beginning to feel Emirates’ pressure.  Notably, we see little impact on US carriers from Emirates’ growth, simply because its Dubai hub is on the “other side” of their primary international markets in Asia and Europe.

Additional information is available as part of our Premium Research offering.


Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>