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Etihad CEO Warns Tariffs Disrupt Air Travel More Than Conflicts

Financial Times Companies •
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Etihad Airways CEO Antonoaldo Neves has warned that new trade tariffs are proving more disruptive to global air travel than regional conflicts, drawing a stark comparison to the way snowstorms can paralyze air traffic for several days. Speaking at a recent industry conference, Neves emphasized that the economic uncertainty created by tariffs is forcing airlines to reconsider routes, pricing strategies, and operational costs in ways that conflict zones typically do not. The comparison highlights how geopolitical economic measures can have immediate and tangible effects on the aviation sector, potentially reshaping international travel patterns.

Neves' comments come as airlines worldwide grapple with the fallout from escalating trade tensions between major economies. Etihad, the national carrier of the United Arab Emirates, has been particularly affected as it navigates a complex web of international regulations and market access issues. The airline industry, which relies heavily on open skies agreements and stable international relations, is finding itself at the mercy of trade policies that were never designed with aviation in mind. This situation has forced carriers to adopt more flexible business models and contingency plans to mitigate the impact of sudden policy changes.

The disruption caused by tariffs extends beyond just flight operations. Airlines are facing increased costs for aircraft parts, fuel, and maintenance services as supply chains are affected by new trade barriers. For Etihad and other international carriers, this means higher operational expenses and potential route adjustments. The long-term implications could include reduced flight frequencies, higher ticket prices for consumers, and a reevaluation of hub strategies as airlines seek to minimize exposure to tariff-related risks.