Airlines

Emirates Airline president remains optimistic despite US-China trade conflict

Key Points
  • His comments come at a time when the airline industry appears to be bearing the brunt of the escalating trade dispute between the world's two largest economies.
  • "The halo effect of those two enormous economies on the rest of the global economy is massive," Clark said.
  • "And, until this correction and adjustment has been sorted — which I think it will be, but it might take a bit of time — you are going to get these concerns."
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Emirates' Tim Clark looks forward to Dubai's Expo2020

Emirates Airline President Tim Clark believes the Dubai-based carrier will eventually overcome escalating concerns about a global economic downturn.

His comments come at a time when the airline industry appears to be bearing the brunt of the escalating trade dispute between the world's two largest economies.

The U.S. and China are expected to hold high-level trade talks early next month, but lingering concerns about slowing global growth remain front and center for financial markets.

When asked by CNBC's Hadley Gamble how Emirates Airline planned to tackle fears of a global recession, as well as deepening worries about the ongoing U.S.-China trade war, Clark replied: "You do face these headwinds and you do face some quite heavy nosedives in certain areas, but they always come good."

In an interview last week, Clark said that while the carrier's cargo operations were down 40% when compared to two years ago, it had the tools at its disposal to manage the setback.

"The halo effect of those two enormous economies on the rest of the global economy is massive. And, until this correction and adjustment has been sorted — which I think it will be, but it might take a bit of time — you are going to get these concerns," Clark said.

"As far as we are concerned, we are not insulated to it, but we are armed mentally to deal with that kind of situation."

The dispute between the U.S. and China has dragged on for well over a year, battering financial markets and souring business and consumer sentiment.

On Monday, U.S. Treasury Secretary Steven Mnuchin confirmed high-level trade talks between both sides would take place next month.

In an interview with Fox Business Network, Mnuchin said negotiators from the U.S. and China had made some progress in last week's deputy-level meetings.