Emirates Group records AED 4.1 billion half-year profit

The Emirates Group posted AED 4.1 billion ($1.1 billion) in pre-tax profit for the six months ended September, as the Gulf conflict and higher fuel costs sharply reduced earnings from a year earlier.

The Dubai aviation group said on Thursday that profit before tax fell from AED 12.2 billion in the corresponding period of 2025-26. Profit after tax declined by 66 per cent to AED 3.6 billion, while revenue contracted 12 per cent to AED 66.2 billion.

Earnings before interest, tax, depreciation and amortisation dropped 41 per cent to AED 12.5 billion, reflecting the financial impact of interrupted flying, weaker passenger volumes and expensive aviation fuel. The results cover the first half of the group’s financial year, from April to September 2026.

Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates airline and Group, said customer demand remained firm and cargo operations contributed strongly despite the challenging environment. The group maintained substantial cash reserves while navigating airspace restrictions and uncertainty over regional travel.

The airline accounted for most of the group’s profit, earning AED 3.7 billion before tax, against AED 11.4 billion a year earlier. Its after-tax profit fell to AED 3.3 billion, and revenue including other operating income declined 13 per cent to AED 56.9 billion.

Emirates carried 21.8 million passengers during the half-year, a fall of 22 per cent. Passenger capacity measured in available seat kilometres contracted 17 per cent, while traffic measured in revenue passenger kilometres declined 25 per cent. The average seat occupancy rate slipped to 72 per cent from 79.5 per cent.

The figures demonstrate the continuing effect of the conflict on the airline’s ability to operate its normal schedule. By 30 September, Emirates had restored 91 per cent of its pre-disruption network, serving 150 airports across 78 countries and territories with passenger and cargo operations.

Fuel costs placed additional pressure on profitability. Although the airline purchased 12 per cent less fuel because of reduced flying, its fuel bill before hedging gains rose 60 per cent compared with the corresponding period last year. Fuel represented 34 per cent of operating expenditure.

The company said its fuel risk management arrangements generated AED 7.1 billion in gains, limiting the net increase in fuel expenditure to 13 per cent. Overall operating costs, including fuel, declined 2 per cent as the airline operated fewer flights. Emirates’ EBITDA fell 41 per cent to AED 11.5 billion.

Cargo provided an important counterweight to weaker passenger activity. Emirates SkyCargo revenue increased 52 per cent as restrictions on airfreight capacity and disruption to maritime transport altered shipping patterns. The division transported 1.2 million tonnes of freight, only 1 per cent below the previous year’s volume.

The cargo business took delivery of five Boeing 777 freighters and deployed its first converted passenger aircraft for freight operations. It also added freighter destinations including Almaty and Zhengzhou, while introducing dedicated cargo services to more than 15 destinations already served by the airline.

The group’s ground handling and travel services subsidiary, dnata, recorded AED 410 million in pre-tax profit, down 51 per cent. Its after-tax earnings declined 56 per cent to AED 309 million, while revenue fell 7 per cent to AED 11 billion.

dnata handled 414,012 aircraft movements, an 8 per cent decline, and 1.49 million tonnes of cargo, down 6 per cent. Airport operations generated AED 5.4 billion in revenue, while flight catering and retail contributed AED 4.2 billion. Travel services revenue declined 31 per cent to AED 1.4 billion.

The group finished September with AED 54.1 billion in cash, compared with AED 59.6 billion at the end of March. It continued financing aircraft commitments and debt obligations and paid AED 2 billion in outstanding dividends to its owner, the Investment Corporation of Dubai.

The airline also expanded its onboard connectivity programme, installing Starlink equipment on another 36 aircraft and bringing the equipped fleet to 57 by September. Separately, the group began construction of a $5.1 billion engineering and maintenance complex at Al Maktoum International Airport. dnata pursued cargo infrastructure projects in Dubai South and Western Sydney, despite the downturn.

Emirates received nine Airbus A350 aircraft and refurbished cabins on nine A380s and three Boeing 777s during the period. Its workforce, including dnata employees, stood at 128,237 at the end of September, 2 per cent below the March figure.