Tariffs fallout to not hit UAE-US travel, for now

AIRLINES MIGHT ABSORB EXTRA COSTS TO NOT HURT DEMAND

- BY DHANUSHA GOKULAN Chief Reporter

US President Donald Trump's sweeping new tariffs on imports are unlikely to directly affect UAE-US travel but could raise indirect costs, according to travel and aviation experts.

While airlines may initially absorb costs, fuel prices remain a key concern. “In the short to medium term, it is unlikely that airlines will hike fares so as not to damage travel demand,” said Saj Ahmad, Chief Analyst at StrategicAero Research.

“As with most airlines, expenses like fuel and MRO parts/ spares are usually procured over a defined period depending on the procurement contracts already in place,” he added.