KARACHI – Emirates Group on Thursday reported a 66 per cent decline in its half-year profit after tax to AED 3.6 billion ($1 billion), as regional conflict disrupted flight operations and higher fuel prices increased costs.
The group’s profit before tax stood at AED4.1bn ($1.1bn) for the six months ended Sept 30, 2026, while revenue fell 12pc to AED66.2bn ($18bn), according to a statement.
Earnings before interest, taxes, depreciation and amortisation declined 41pc to AED12.5bn, compared with AED21.1bn in the corresponding period last year.
The results reflected the full six-month impact of the Gulf conflict, including intermittent airspace restrictions, flight disruptions and travel advisories that affected passenger demand and travel patterns.
Group Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum said customer demand and cargo operations had supported earnings despite a sharp increase in jet fuel prices.
He said the group would maintain its investments in aircraft, products and services, while monitoring costs and geopolitical developments.
The group’s cash balance stood at AED54.1bn at the end of September, compared with AED59.6bn on March 31. It used its reserves to meet business requirements, make aircraft pre-delivery payments and service debt.
It also paid the remaining AED2bn of a dividend totalling AED3.5bn declared for 2025-26 to its owner, the Investment Corporation of Dubai.
Passenger numbers decline
Emirates airline carried 21.8 million passengers between April and September, down 22pc from the same period last year, as a reduced flying schedule constrained capacity.
Passenger capacity declined 17pc, while passenger traffic, measured in revenue passenger kilometres, fell 25pc. The passenger seat factor, which measures the proportion of available seats filled, dropped to 72pc from 79.5pc.
By Sept 30, the airline had restored 91pc of its pre-disruption network, serving 150 airports across 78 countries and territories.
Emirates reported a profit before tax of AED3.7bn, compared with AED11.4bn in the corresponding period last year. Profit after tax fell 66pc to AED3.3bn, while revenue, including other operating income, declined 13pc to AED56.9bn.
Fuel remained the airline’s largest operating expense, accounting for 34pc of costs. Although the volume of fuel purchased fell 12pc as operations contracted, fuel costs before hedging gains increased 60pc.
Gains of AED7.1bn from fuel hedging limited the net increase in fuel costs to 13pc, the airline said.
Cargo revenue rises
Emirates SkyCargo transported 1.2m tonnes of freight during the period, down 1pc year-on-year. However, cargo revenue rose 52pc as the conflict reduced available airfreight capacity and disruptions to maritime transport prompted shippers to seek alternatives.
The cargo division received five Boeing 777 freighters and deployed its first passenger aircraft converted into a freighter. It also added Almaty and Zhengzhou to its freighter network and introduced dedicated cargo services to more than 15 existing Emirates destinations.
The passenger airline received nine Airbus A350 aircraft and completed cabin refurbishment on 12 aircraft during the half-year. Its planned fleet retrofit programme represents an investment exceeding $7bn.
Emirates also continued work on its $5.1bn engineering and maintenance facility at Al Maktoum International Airport, which is expected to be completed in the mid-2030s.
Dnata earnings weaken
Dnata, the group’s airport services, catering and travel business, reported a 51pc decline in profit before tax to AED410m. Profit after tax fell 56pc to AED309m, while revenue, including other operating income, declined 7pc to AED11bn.
Its international operations helped offset weaker airline and travel activity in the UAE and the wider Gulf region, the group said.
Airport operations remained dnata’s largest revenue contributor at AED5.4bn, down 3pc. Aircraft turns handled fell 8pc to 414,012, while cargo volumes declined 6pc to 1.49m tonnes.
Revenue from flight catering and retail rose 1pc to AED4.2bn, supported by growth in inflight retail. However, the number of meals supplied fell 10pc to 54m, largely because of the loss of key contracts in the United Kingdom.
The travel division’s revenue declined 31pc to AED1.4bn, primarily reflecting the divestment of Travel Republic and Netflights in the UK.
The Emirates Group’s workforce stood at 128,237 at the end of September, down 2pc from March. Both Emirates and dnata continued recruitment to meet business requirements, the statement said.
