Emirates Group delivers $1.1bn profit despite higher fuel costs, disruption

CONSUMER NEWS

Nov 5, 2026 9:33 AM

The Emirates Group reported a profit before tax of AED 4.1 billion ($1.1 billion) for the first half of its 2026-27 financial year, despite operational disruption caused by the ongoing conflict in the Gulf region and a sharp increase in global jet fuel prices.

The Group’s profit after tax reached AED 3.6 billion ($1 billion), down 66% compared with the same period last year. Revenue declined 12% to AED 66.2 billion ($18 billion), from AED 75.4 billion ($20.6 billion), while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 41% to AED 12.5 billion ($3.4 billion).

The Group ended the six-month period on 30 September 2026 with cash reserves of AED 54.1 billion ($14.7 billion), compared with AED 59.6 billion ($16.2 billion) at the end of March. The cash position supported business requirements, including aircraft pre-delivery payments and debt obligations. The Group also paid the remaining AED 2 billion ($545 million) dividend to its owner, the Investment Corporation of Dubai, bringing the total distribution for 2025-26 to AED 3.5 billion ($953 million).

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “It has been a demanding six months, and once again our business model and our people stood up to the test. Against unprecedented regional challenges and high fuel prices, the Group has delivered a profit before tax of AED 4.1 billion ($ 1.1 billion). Customer demand held firm and our cargo operations made a strong contribution, keeping revenue and cash levels healthy even as global jet fuel prices doubled against the same period last year, impacting our costs and profitability.

“I’d like to thank 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.

“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.”

Sheikh Ahmed added: “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. 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.”

The Group’s employee base stood at 128,237 on 30 September 2026, a 2% decrease compared with 31 March. Both Emirates and dnata continue recruitment to support operational requirements.

Emirates airline

Emirates reported a profit before tax of AED 3.7 billion ($1 billion) for the first half of 2026-27, compared with AED 11.4 billion ($3.1 billion) in the same period last year. Profit after tax declined 66% to AED 3.3 billion ($903 million), while revenue, including other operating income, fell 13% to AED 56.9 billion ($15.5 billion).

The airline faced intermittent airspace restrictions and closures across the region, alongside changes in travel demand and passenger flows resulting from government travel advisories. It focused on restoring its network through its Dubai hub and was operating 91% of its pre-disruption network by 30 September, serving 150 airports across 78 countries and territories.

To support customer confidence, Emirates introduced travel cover unrestricted by government travel advisories, free date changes on booked tickets and flexible refund policies.

Between April and September, the airline received nine new Airbus A350 aircraft and completed cabin refurbishments on 12 aircraft, comprising nine A380s and three Boeing 777s. The ongoing fleet retrofit programme represents a planned investment of more than $7 billion to introduce its latest cabin products across the fleet.

Its Starlink installation programme also progressed, with 36 additional aircraft equipped with high-speed onboard connectivity, bringing the total installed fleet to 57 aircraft by the end of September.

Emirates also introduced two new cabin features: the U-dream headrest in Economy Class and electronically controlled privacy dividers in Premium Economy. On the ground, the airline opened new concept lounges in Munich, Frankfurt and Manchester, alongside additional retail stores, taking its travel store network to more than 30 locations.

Further investments included the launch of construction on a $5.1 billion engineering and maintenance, repair and overhaul (MRO) facility at Al Maktoum International Airport in May. Completion is expected in the mid-2030s.

Despite the challenging operating environment, Emirates continued its community initiatives, including programmes supporting young travellers with autism through its Travel Rehearsals initiative. The programme expanded to 15 additional stations during the first half, bringing its total reach to 47 stations.

The airline also extended its sponsorship agreements with Arsenal Football Club until 2033 and Real Madrid until 2031.

Operationally, Emirates' overall capacity declined 10% to 28.2 billion Available Tonne Kilometres (ATKM). Available Seat Kilometres (ASKM) fell 17%, while passenger traffic, measured in Revenue Passenger Kilometres (RPKM), decreased 25%. The average passenger seat factor stood at 72%, compared with 79.5% last year.

The airline carried 21.8 million passengers during the six-month period, down 22% year-on-year.

Emirates SkyCargo transported 1.2 million tonnes of cargo, a 1% decrease compared with the previous year. However, cargo revenue increased 52%, supported by reduced airfreight capacity across the region and increased demand for air transport amid maritime shipping disruptions.

The cargo division expanded its fleet with five new Boeing 777 freighters and its first passenger-to-freighter converted aircraft. It also added Almaty and Zhengzhou to its freighter network, introduced dedicated freighter services to more than 15 existing Emirates destinations and increased frequencies in several key markets.

Emirates' operating costs declined 2%, in line with reduced operations. However, fuel costs before hedging gains increased 60%, despite a 12% reduction in fuel uplift. Gains of AED 7.1 billion from its fuel price risk management strategy helped reduce the net fuel cost increase to 13%. Fuel accounted for 34% of total operating costs.

The airline recorded EBITDA of AED 11.5 billion ($3.1 billion), down 41% from AED 19.7 billion ($5.4 billion) last year.

Elsewhere, Emirates Flight Catering reported external revenue of AED 273 million ($74 million), down 51%, while meals uplifted declined 41% to 4.5 million. Emirates Leisure Retail/MMI revenue decreased 13% to AED 1.2 billion, reflecting lower tourism traffic in the UAE.

dnata

dnata reported revenue, including other operating income, of AED 11 billion ($3 billion) for the first half of 2026-27, down 7% from AED 11.7 billion ($3.2 billion) in the previous year.

Profit before tax declined 51% to AED 410 million ($112 million), while profit after tax fell 56% to AED 309 million ($84 million). EBITDA reached AED 939 million ($256 million), down 31% from AED 1.4 billion ($372 million).

The company's international operations helped offset reduced airline and travel activity in the UAE and wider Gulf region. During the period, dnata secured several multi-year agreements, including a cargo partnership with Silk Way Group in Singapore and inflight catering contracts with Cathay Pacific across airports in the UK and US.

Its airport operations division also secured a seven-year ground handling licence at Amsterdam Schiphol Airport, strengthening its presence at a major European aviation hub.

dnata continued investing in infrastructure and technology, opening an integrated command centre to support its growing Dubai cargo operations and committing AED 8 million to expand The Fort – Lisaili, Arabian Adventures' desert tourism destination.

Additional investments included automated aircraft approach systems in Dubai, an aircraft catering simulator in Dublin and autonomous tractor trials across Europe and Asia.

The company also announced an AU$32 million investment in a new cargo facility at Western Sydney International Airport, with its catering facility at the airport on track to open in 2027. In Dubai South, dnata commissioned a new AED 100 million ($27 million) logistics facility and progressed plans for a AED 37 million investment in Alat, Azerbaijan.

dnata's airport operations remained its largest revenue contributor, generating AED 5.4 billion ($1.5 billion), down 3%. Aircraft turns handled decreased 8% to 414,012, while cargo volumes fell 6% to 1.49 million tonnes.

Its catering and retail operations generated AED 4.2 billion ($1.1 billion), up 1%, supported by growth in inflight retail business with airlines including easyJet and Aer Lingus. The division uplifted 54 million meals, a 10% decline compared with last year, largely due to the loss of key UK contracts.

The travel division recorded revenue of AED 1.4 billion ($373 million), down 31%, primarily reflecting the divestment of its UK businesses Travel Republic and Netflights, which stopped accepting new bookings in November 2025. Its underlying total transactional value (TTV) reached AED 3.8 billion ($1 billion), compared with AED 5 billion ($1.4 billion) in the previous year.

During the period, dnata also integrated its Imagine Cruising and Travelbag businesses to consolidate their complementary portfolios, strengthen international operations and support future growth. -TradeArabia News Service