Iran war hits Emirates first-half profit, down 66 pc

The Emirates Group’s profit after tax fell 66 per cent to Dirham 3.6 billion (USD 1 billion) in the first half of 2026-27 as the Iran war disrupted aviation operations across the region and higher fuel prices increased costs. The results were announced on Thursday, November 5.

The Dubai-based aviation group recorded revenue of Dh 66.2 billion (USD 18 billion) for the six months ended September 30, down 12 per cent from Dh 75.4 billion (USD 20.6 billion) in the corresponding period last year.

Profit before tax stood at Dh 4.1 billion (USD 1.1 billion), while earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 41 per cent to Dh 12.5 billion (USD 3.4 billion).

The group’s cash reserves stood at Dh 54.1 billion (USD 14.7 billion) on September 30, compared with Dh 59.6 billion (USD 16.2 billion) at the end of March. It also completed a Dh 3.5 billion (USD 953 million) dividend payment to its owner, the Investment Corporation of Dubai, during the reporting period.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, said customer demand remained firm and cargo operations made a strong contribution despite regional challenges. He also credited the UAE government’s coordination with aviation stakeholders for helping restore air transport following military activity across the Gulf.

Emirates passenger numbers fall 22 pc

Emirates airline carried 21.8 million passengers between April 1 and September 30, a 22 per cent decline from the same period last year. Its passenger seat factor fell to 72 per cent from 79.5 per cent.

The airline 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.

Emirates recorded a profit before tax of Dh 3.7 billion (USD 1 billion), down from Dh 11.4 billion (USD 3.1 billion) a year earlier. Revenue declined 13 per cent to Dh 56.9 billion (USD 15.5 billion), while profit after tax fell 66 per cent to Dh 3.3 billion (USD 903 million).

Higher fuel expenditure added to the pressure. Fuel costs before hedging gains rose 60 per cent despite a 12 per cent reduction in fuel consumption. Gains of Dh 7.1 billion from its fuel price risk management strategy limited the net increase in fuel costs to 13 per cent. Fuel accounted for 34 per cent of the airline’s operating costs.

Emirates SkyCargo transported 1.2 million tonnes of cargo, down 1 per cent year-on-year. However, cargo revenue increased 52 per cent as reduced airfreight capacity and disruptions to maritime transport encouraged shippers to use air cargo.

The airline received nine new Airbus A350 aircraft and completed cabin refurbishments on 12 aircraft during the six-month period. It also installed Starlink connectivity on 36 additional aircraft, taking its equipped fleet to 57.

dnata profit falls 56 pc

The group’s airport services and travel subsidiary, dnata, reported a 56 per cent decline in profit after tax to Dh 309 million (USD 84 million). Its revenue fell 7 per cent to Dh 11 billion (USD 3 billion), while profit before tax dropped 51 per cent to Dh 410 million (USD 112 million).

Airport operations generated Dh 5.4 billion (USD 1.5 billion), down 3 per cent. The division handled 414,012 aircraft turns, an 8 per cent decline, and 1.49 million tonnes of cargo, down 6 per cent.

Flight catering and retail revenue increased 1 per cent to Dh 4.2 billion (USD 1.1 billion), supported by growth in inflight retail services. Its travel division recorded a 31 per cent decline in revenue to Dh 1.4 billion (USD 373 million), partly due to the divestment of its UK businesses Travel Republic and Netflights.

During the period, dnata secured a seven-year ground-handling licence at Amsterdam Schiphol Airport and announced an AUD 32 million investment in a cargo facility at Western Sydney International Airport. It also commissioned a Dh 100 million (USD 27 million) logistics facility in Dubai South.

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