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Oil Updates – costs stable as traders assess OPEC+ output minimize extension


RIYADH: Geopolitical and economic changes, safety, and emissions are in the spotlight at the 80th IATA Annual General Meeting and World Air Transport Summit that commenced in Dubai on June 2. 

According to the International Air Transport Association, leaders from the global airline industry are attending the World Air Transport Summit scheduled to continue until June 4 at the event. Discussions will encompass topics such as artificial intelligence, innovation, and a review of the annual report on the air transport industry. 

The gathering, hosted by Emirates and the first of its kind in Dubai, is expected to witness over 1,500 participants, including IATA’s member airlines, IATA AGM-level Strategic Partners, and international and regional associations. Additionally, it includes leading manufacturers, industry suppliers, and media representatives. 

IATA’s Director General Willie Walsh stated: “Dubai’s world-leading connectivity places it at the crossroads of the planet. And it will soon be the center of the airline industry’s leadership as it hosts the 80th IATA Annual General Meeting and World Air Transport Summit.”  

He added: “We look forward to hosting our industry colleagues in Dubai, Emirates’ home and hub. This is a city that has forged its place in global aviation and prospered, thanks to its visionary leaders and progressive policies that recognize air transport’s role as a key economic enabler.”  

In line with this, the IATA chief noted that last year, aviation contributed 27 percent to Dubai’s gross domestic product and supported $37 billion in gross value added.  

Tim Clark, president of Emirates, remarked that there are always exciting new developments in Dubai. 

“I hope visiting delegates will get to a chance to experience this buzzing city and the UAE’s renowned hospitality for themselves.” Clark said. 

The World Air Transport Summit is set to follow the annual meeting, offering a comprehensive program that addresses the critical issues facing aviation. 

“The commitment to achieve net-zero carbon emissions by 2050 will top the agenda of the 80th IATA AGM and World Air Transport Summit. We will explore solutions to accelerate progress, particularly with the production of sustainable aviation fuel and the potential for carbon removals,” said Walsh. 

He added that they will also assess their progress on safety, financial sustainability, and other key industry topics. 

“It’s important that we put these challenges on the table so that all stakeholders, including governments, have a clear understanding of what airlines need to connect people and economies safely, efficiently, and ever more sustainably,” IATA director general said. 

Meanwhile, the global aviation watchdog has announced a substantial decrease of nearly $1.8 billion in airline funds previously blocked by governments from repatriation.  

This reduction, representing a notable 28 percent decline, has been observed as of the end of April, according to a statement by IATA. 

Since December 2023, the blocked funds have diminished by $708 million, marking a significant step toward resolving the issue of hindered repatriation.  

IATA reiterated the call for governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations. 

“The reduction in blocked funds is a positive development. The remaining $1.8 billion, however, is significant and must be urgently addressed. The efficient repatriation of airline revenues is guaranteed in bilateral agreements,” Walsh said. 

He added that even more importantly, it is a prerequisite for airlines — who operate on thin margins — to be able to provide economically critical connectivity. “No business can operate long-term without access to rightfully earned revenues.” 

IATA added that the main driver of the reduction was a significant clearance of funds blocked in Nigeria. Egypt also approved the clearance of its significant accumulation of blocked funds. However, in both cases, airlines were adversely affected by the devaluation of the Egyptian pound and the Nigerian naira. 

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