EMIRATES GROUP POSTS AED 4.1 BILLION HALF-YEAR PROFIT DESPITE REGIONAL CONFLICT AND RISING FUEL COSTS
The Emirates Group has reported a profit before tax of AED 4.1 billion (US$1.1 billion) for the first six months of its 2026-27 financial year, maintaining profitability despite operational disruptions arising from regional conflict, airspace restrictions and significantly higher fuel prices.
The financial results, announced on Thursday, 5 November 2026, reflect a challenging operating environment for the aviation industry, with the Group recording a 66 per cent decline in profit before tax compared to the corresponding period last year. Revenue also decreased by 12 per cent, from AED 75.4 billion (US$20.6 billion) to AED 66.2 billion (US$18 billion).
After accounting for income tax charges, the Group's profit after tax stood at AED 3.6 billion (US$1 billion), also representing a 66 per cent decline from the previous financial year. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to AED 12.5 billion (US$3.4 billion), compared to AED 21.1 billion (US$5.7 billion) recorded during the same period last year.
Despite the reduced earnings, the Group maintained a cash position of AED 54.1 billion (US$14.7 billion) as at 30 September 2026, compared to AED 59.6 billion (US$16.2 billion) at the end of March 2026. The available reserves have supported business operations, aircraft pre-delivery payments and existing debt obligations.
Emirates Group Chairman and Chief Executive, His Highness Sheikh Ahmed bin Saeed Al Maktoum, said the six-month period had tested the organisation's operational resilience but highlighted the contribution of its employees and business model in sustaining profitability.
“It has been a demanding six months, and once again our business model and our people stood up to the test,” he said.
Sheikh Ahmed attributed the Group's financial performance partly to sustained customer demand and the strong contribution from its cargo operations. However, he noted that global jet fuel prices had doubled compared to the same period last year, placing additional pressure on operating costs and profitability.
He also commended the UAE government for its response to the regional security situation, particularly its coordination with stakeholders to facilitate the safe resumption of air transport activities following military activity across the Gulf region.
The Group said government measures had contributed to the easing of travel advisories to and through the UAE, allowing the airline to restore its operations and continue serving customers.
Emirates continues network recovery and fleet investments
Emirates Airline recorded a profit before tax of AED 3.7 billion (US$1 billion) during the first half of the financial year, representing a 68 per cent decline from the AED 11.4 billion (US$3.1 billion) recorded during the corresponding period last year.
The airline's revenue, including other operating income, stood at AED 56.9 billion (US$15.5 billion), down 13 per cent from AED 65.6 billion (US$17.9 billion).
Its operations were affected by intermittent airspace restrictions and closures across the region, which disrupted flight schedules and influenced passenger travel patterns. In response, Emirates focused on restoring its network and connectivity through its Dubai hub.
By 30 September 2026, the airline had restored 91 per cent of its pre-disruption network, serving 150 airports across 78 countries and territories.
During the six-month period, Emirates carried 21.8 million passengers, representing a 22 per cent decrease compared to the previous year. Its passenger seat factor also declined to 72 per cent from 79.5 per cent, reflecting the impact of reduced flight operations and lower passenger traffic.
To rebuild customer confidence, the airline introduced several initiatives, including comprehensive travel cover that is unrestricted by government travel advisories, free date changes on booked tickets and flexible refund policies.
Despite the operational challenges, Emirates maintained its investment programme, receiving nine new Airbus A350 aircraft and completing cabin refurbishment on 12 aircraft, comprising nine Airbus A380s and three Boeing 777s.
The airline also continued expanding its Premium Economy offering and installing high-speed Starlink Wi-Fi across its fleet. A further 36 aircraft were equipped during the reporting period, bringing the total number of Starlink-installed aircraft to 57 by the end of September.
Emirates also introduced new cabin features, including its U-dream headrest in Economy Class and electronically controlled privacy dividers in Premium Economy, aimed at improving passenger comfort and privacy.
The airline's long-term infrastructure investments also continued, with construction beginning in May on a US$5.1 billion engineering and Maintenance, Repair and Overhaul facility at Al Maktoum International Airport. The facility is expected to be completed in the mid-2030s.
Cargo operations support airline revenue
While passenger operations experienced a decline, Emirates SkyCargo recorded stronger revenue performance during the period.
The cargo division transported 1.2 million tonnes, representing a one per cent decline in volumes compared to the previous year. However, cargo revenue increased by 52 per cent as reduced airfreight capacity in the region and disruptions to marine transport increased demand for air cargo services.
Emirates SkyCargo also expanded its freighter capacity through the delivery of five new Boeing 777 freighters and the deployment of its first passenger-to-freighter converted aircraft.
Its network was extended to two additional destinations, Almaty and Zhengzhou, while dedicated freighter services were introduced to more than 15 existing Emirates destinations.
The airline's fuel expenses remained a major financial pressure. Although overall operating costs declined by two per cent in line with reduced operations, fuel costs before hedging gains increased by 60 per cent.
However, gains of AED 7.1 billion from its fuel price risk management strategy helped offset the impact, reducing the net increase in fuel costs to 13 per cent. Fuel accounted for 34 per cent of the airline's operating costs.
dnata records lower profits amid reduced business volumes
The Group's aviation services provider, dnata, recorded a profit before tax of AED 410 million (US$112 million), representing a 51 per cent decline from the same period last year.
Its revenue, including other operating income, decreased by seven per cent to AED 11 billion (US$3 billion), compared to AED 11.7 billion (US$3.2 billion) recorded previously.
The company attributed the performance to reduced volumes in some of its UAE and United Kingdom operations, although its international businesses helped offset some of the impact.
dnata's airport operations remained its largest revenue contributor, generating AED 5.4 billion (US$1.5 billion), despite a three per cent decline. The division handled 414,012 aircraft turns, representing an eight per cent decrease, while cargo handled amounted to 1.49 million tonnes, down six per cent.
Its flight catering and retail operations generated AED 4.2 billion (US$1.1 billion), recording a one per cent increase in revenue. The division uplifted 54 million meals during the period, representing a 10 per cent decline compared to the previous year.
Meanwhile, dnata's travel division recorded revenue of AED 1.4 billion (US$373 million), down 31 per cent, largely due to the divestment of its Travel Republic and Netflights businesses in the United Kingdom.
Despite the financial pressures, dnata continued pursuing strategic investments and securing new international business opportunities.
Among its developments was a seven-year ground handling licence secured at Amsterdam Schiphol Airport, alongside new cargo and inflight catering agreements in Singapore, the United Kingdom and the United States.
The company also announced an AU$32 million investment in a new cargo facility at Western Sydney International Airport in Australia, while construction of its new catering facility at the airport is expected to be completed in 2027.
In Dubai, dnata opened a new integrated command centre to support its expanding cargo operations and commissioned a logistics facility valued at AED 100 million in Dubai South.
Group maintains investment plans and recruitment activities
Beyond its financial performance, the Emirates Group continued investing in customer experience, infrastructure, community programmes and future business capabilities.
Its community initiatives during the period included youth technology programmes in New York, a renovated community tennis court in Miami and the launch of the Emirates Nourishment Programme in South Africa, which aims to provide 400,000 breakfasts annually to underprivileged children in partnership with EPCR and the Kolisi Foundation.
The Group also extended its sponsorship agreements with Arsenal Football Club until 2033 and Real Madrid until 2031, reinforcing its international brand partnerships.
As at 30 September 2026, the Group employed 128,237 people, representing a two per cent reduction compared to 31 March 2026. However, both Emirates and dnata continue recruitment activities to meet their operational requirements.
Looking ahead, Sheikh Ahmed said the Group remained cautiously optimistic about the second half of the financial year, while acknowledging the need to monitor fuel prices and geopolitical developments.
“We enter the second half of our 2026-27 financial year with measured optimism,” he said.
He added that the Group would continue prioritising safety, quality and customer satisfaction while relying on its financial foundation and cash reserves to navigate the challenges facing the aviation industry.
The Emirates Group's latest results demonstrate the continued pressure facing international aviation businesses amid geopolitical uncertainty and rising operating costs, while highlighting the importance of cargo operations, financial reserves and sustained investment in maintaining business resilience.