Emirates Group records Dh4.1 billion profit despite regional aviation turmoil

Dubai: Dubai aviation giant Emirates Group announced its half-year financial results on Thursday, posting a profit before tax of Dh4.1 billion for the first six months of 2026-27.

The Group described the performance as remarkable given “the disruption and high fuel prices caused by the ongoing conflict in the Gulf region”.

Emirates Group, which comprises Dubai's flagship airline Emirates and aviation services company dnata, recorded a 66 per cent drop in profit compared with the same period last year.

Also, Group revenue fell 12 per cent to Dh66.2 billion as regional aviation continued to grapple with the US-Iran conflict.

The Group reported EBITDA of Dh12.5 billion (US$3.4 billion), 41 per cent lower than the Dh21.1 billion recorded in the same period last year, when it achieved record profit and revenue.

The Group closed the first half of 2026-27 with cash reserves of Dh54.1 billion as of September 30, compared with Dh59.6 billion on March 31.

In a statement, it said: “The Group has been able to tap on its own strong cash reserves to support business needs, including pre-delivery payments for aircraft and servicing existing debt obligations.”

It also paid the remaining Dh2 billion in dividends to its owner, the Investment Corporation of Dubai (ICD), out of the Dh3.5 billion declared for the 2025-26 financial year.

A 'demanding' six months

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, described the past six months as “demanding”.

“It has been a demanding six months, and once again our business model and our people stood up to the test,” he said.

He said customer demand had held firm and the company's cargo operations had made a strong contribution, helping to keep revenue and cash levels healthy, “even as global jet fuel prices doubled against the same period last year, impacting our costs and profitability”.

Sheikh Ahmed thanked the UAE Government for its “decisive response and its co-ordination of all stakeholders to enable the safe resumption of air transport in the aftermath of military activity across the Gulf region”.

“The government's measures have also led to the easing of travel advisories to and through the UAE. This has allowed us to restore our operations with confidence and to keep serving our customers and communities,” he said.

“Throughout this time, we have not paused our investments. Emirates and dnata continue to commit significant resources to expand our fleet, enhance our products and services, and develop capabilities that will shape the future of our business. This is how we stay ahead and stay resilient to external challenges.”

The Group's workforce fell by 2 per cent from March 31 to 128,237 employees as of September 30. However, both Emirates and dnata continue to recruit to support business requirements, the Group said.

How did Emirates airline perform?

Emirates airline reported a 68 per cent decline in half-year profit before tax to Dh3.7 billion, as regional airspace restrictions, reduced flight operations and higher fuel prices weighed on its performance.

Revenue fell 13 per cent to Dh56.9 billion in the six months to September 30, compared with the same period last year. The airline attributed the decline to operational disruptions and lower capacity, although strong cargo performance provided some support.

Emirates carried 21.8 million passengers during the period, down 22 per cent year on year, as intermittent airspace restrictions and closures across the region disrupted operations and government travel advisories affected travel demand and passenger flows.

The airline said it had restored 91 per cent of its pre-disruption network by September 30, serving 150 airports across 78 countries and territories through its Dubai hub.

Higher fuel prices remained a significant drag on profitability. Although Emirates' overall operating costs fell 2 per cent in line with reduced operations, fuel costs before hedging gains rose 60 per cent from the previous half-year, despite a 12 per cent reduction in fuel uplift.

Gains of Dh7.1 billion from its fuel price risk management strategy helped cushion the impact, limiting the net increase in fuel costs to 13 per cent. Fuel accounted for 34 per cent of the airline's total operating costs, remaining its largest expense.

Emirates reported EBITDA of Dh11.5 billion ($3.1 billion), down 41 per cent from Dh19.7 billion ($5.4 billion) a year earlier.

Overall capacity, measured in Available Tonne Kilometres (ATKM), fell 10 per cent to 28.2 billion as the airline operated a reduced flying schedule.

Passenger capacity, measured in Available Seat Kilometres (ASKM), declined 17 per cent, while passenger traffic, measured in Revenue Passenger Kilometres (RPKM), dropped 25 per cent.

The average passenger seat factor fell to 72 per cent from 79.5 per cent in the same period last year, reflecting the sharper decline in passenger traffic.

What did Emirates do during the period?

The airline launched several initiatives to boost customer confidence, including what it described as an industry-first comprehensive travel cover that is not restricted by government travel advisories, free date changes on booked tickets and generous refund policies.

Between April 1 and September 30, Emirates expanded its Premium Economy offering and brought its latest cabin products to more markets. It took delivery of nine new A350 aircraft and completed the full cabin refurbishment of 12 aircraft: nine A380s and three Boeing 777s.

Emirates' retrofit programme, one of the world's largest such projects, represents a planned investment of more than US$7 billion to introduce its latest cabin products across its fleet.

The airline's Starlink installation programme also continued, with 36 more aircraft equipped with high-speed in-flight Wi-Fi during the first six months of the year. This brought the total number of Starlink-equipped aircraft to 57 as of September 30.

How did dnata perform?

Aviation services company dnata recorded a half-year profit before tax of Dh410 million, down 51 per cent from the same period last year. Revenue fell 7 per cent to Dh11 billion, reflecting lower volumes in some of its UAE and UK businesses.

dnata's airport operations, catering and retail, and travel services divisions adapted to the operational challenges caused by the regional conflict. Its international businesses helped offset the impact of reduced airline and travel traffic in the UAE and the wider Gulf region.

The company continued to secure customers and multi-year agreements across its global operations. These included a cargo partnership with Silk Way Group in Singapore and inflight catering contracts with Cathay Pacific at several airports in the UK and the US. dnata Airport Operations also secured a seven-year ground-handling licence at Amsterdam Schiphol Airport.

Other developments and investments during the first half included:

• Opening a new integrated command centre to support its growing cargo operations in Dubai.

• Committing Dh8 million to expand The Fort – Lisaili, Arabian Adventures' desert tourism destination in Dubai.

• Investing in technology and equipment, including automated aircraft approach systems in Dubai, an aircraft catering simulator in Dublin and autonomous tractor trials in Europe and Asia.

• Announcing an investment of A$32 million to build a new cargo facility at Western Sydney International Airport. Construction of a new catering facility at the airport is on track for a 2027 opening.

• Commissioning a Dh100 million (US$27 million) logistics facility in Dubai South and progressing a planned Dh37 million investment in Alat, Azerbaijan.

• Expanding cargo operations at East Midlands Airport and Zurich Airport.

• Integrating its Imagine Cruising and Travelbag businesses within its Travel division to increase scale, share expertise and support international growth.

dnata's financial, operational performance

dnata's revenue, including other operating income, reached Dh11 billion (US$3 billion), down 7 per cent from Dh11.7 billion (US$3.2 billion) in the same period last year.

Its profit before tax was Dh410 million (US$112 million), down 51 per cent, while profit after tax fell 56 per cent to Dh309 million (US$84 million).

EBITDA was Dh939 million (US$256 million), down 31 per cent from Dh1.4 billion (US$372 million) in the previous year.

The performance of its main divisions was as follows:

• Airport operations: The largest contributor to revenue, generating Dh5.4 billion (US$1.5 billion), down 3 per cent. Growth in its international business offset lower customer airline activity at its UAE hub. Aircraft turns handled fell 8 per cent to 414,012, while cargo handled declined 6 per cent to 1.49 million tonnes.

• Flight catering and retail: Revenue rose 1 per cent to Dh4.2 billion (US$1.1 billion), driven by growth in inflight retail, particularly with easyJet and Aer Lingus. The number of meals uplifted fell 10 per cent to 54 million, largely due to the loss of key contracts in the UK.

• Travel: Revenue fell 31 per cent to Dh1.4 billion (US$373 million), compared with Dh2 billion (US$538 million) in the same period last year. The decline was primarily due to the divestment of its UK businesses Travel Republic and Netflights, which stopped accepting new bookings in November 2025. The division's underlying total transaction value (TTV) fell 22 per cent to Dh3.8 billion (US$1 billion), compared with Dh5 billion (US$1.4 billion) a year earlier.

Other business divisions

Other parts of the Group also reported mixed performances during the first half of 2026-27.

• Emirates SkyCargo: Transported 1.2 million tonnes, down 1 per cent from the same period last year. However, cargo revenue increased by 52 per cent as the regional conflict reduced available airfreight capacity and marine transport disruptions prompted shippers to seek airfreight alternatives. The division added five new Boeing 777 freighters and deployed its first passenger-to-freighter converted aircraft. It also expanded its freighter network with two destinations, Almaty and Zhengzhou, introduced dedicated freighter services to more than 15 existing Emirates destinations and increased frequencies to several key markets, including in the Far East.

• Emirates Flight Catering: Revenue from external customers fell 51 per cent to Dh273 million (US$74 million). The division uplifted 4.5 million airline meals, down 41 per cent, due to reduced air traffic at Dubai's airport.

• Emirates Leisure Retail/MMI: Revenue declined 13 per cent to Dh1.2 billion, reflecting lower tourism traffic in the UAE during the first six months of 2026-27.

What comes next?

Sheikh Ahmed said the Group was approaching the second half of the financial year with “measured optimism”.

“We enter the second half of our 2026-27 financial year with measured optimism. While keeping a close watch on costs and geopolitical developments, we remain focused on delivering what Emirates and dnata are known for – safety, quality, and customer satisfaction,” he said.

“We've weathered challenges before, and with our strong cash position and solid foundation built up over the years, the Group is well-placed to navigate the headwinds of volatility and high fuel prices.”