Emirates Group Profit Falls 66% as High Fuel Costs and Gulf Disruptions Hit Aviation

Key Takeaways

• Emirates Group’s first-half profit after tax fell 66% to AED 3.6 billion, while revenue declined 12% to AED 66.2 billion.
• Emirates airline carried 21.8 million passengers, down 22%, as airspace restrictions and travel advisories disrupted Gulf aviation.
• Fuel costs before hedging increased 60%, despite the airline using 12% less fuel because of reduced operations.
• Emirates SkyCargo revenue rose 52% as disruptions to maritime shipping increased demand for air freight.

Emirates Group reported a 66% decline in first-half profit as high jet fuel prices, regional airspace restrictions and weaker passenger traffic placed pressure on the Dubai-based aviation company.

Profit after tax fell to AED 3.6 billion, or approximately $1 billion, during the six months ended September 30, 2026. Profit before tax reached AED 4.1 billion, down 66% from the same period last year.

Group revenue declined 12% to AED 66.2 billion from AED 75.4 billion. Earnings before interest, taxes, depreciation and amortization dropped 41% to AED 12.5 billion.

The results covered the first full six-month period affected by the Gulf conflict, which disrupted flight schedules, forced temporary airspace closures and pushed global energy prices higher.

Emirates Airline Profit Drops as Passenger Traffic Weakens

Emirates airline generated a pre-tax profit of AED 3.7 billion, down 68% from a record AED 11.4 billion in the same period last year. Profit after tax declined 66% to AED 3.3 billion.

Revenue, including other operating income, fell 13% to AED 56.9 billion from AED 65.6 billion.

The airline carried 21.8 million passengers between April and September, representing a 22% year-over-year decline. Available seat capacity fell 17%, while revenue passenger traffic decreased 25%.

As passenger demand declined faster than capacity, Emirates’ average seat load factor dropped to 72%, compared with 79.5% a year earlier.

Intermittent airspace closures, regional military activity and government travel advisories affected passenger confidence and forced the airline to operate a reduced schedule. Emirates said it was serving 91% of its pre-disruption network by the end of September, covering 150 airports across 78 countries and territories.

Demand remained relatively strong in premium cabins, but that resilience was not sufficient to offset fewer passengers, reduced capacity and substantially higher fuel expenses.

Jet Fuel Costs Rise 60% Before Hedging Gains

Fuel was the most significant source of pressure on Emirates’ profitability.

Global jet fuel prices approximately doubled from the same period last year. Although Emirates’ lower flight activity reduced fuel uplift by 12%, its fuel costs before hedging gains increased 60%.

The airline’s fuel-risk management strategy generated gains of AED 7.1 billion, cushioning much of the impact. After accounting for those gains, the net increase in fuel costs was limited to 13%.

Fuel still represented 34% of Emirates’ total operating costs, making it the airline’s largest expense. Overall operating costs declined only 2%, broadly reflecting the reduction in flight operations.

Emirates airline’s EBITDA fell 41% to AED 11.5 billion from AED 19.7 billion. The decline demonstrates how rapidly airline margins can narrow when energy prices rise while capacity and passenger volumes fall.

Gulf Conflict Disrupts Aviation and Travel Demand

The regional conflict affected Emirates through several channels.

Airspace restrictions reduced the number of available routes and required airlines to adjust schedules. Government travel advisories also influenced passenger decisions, particularly for journeys involving connections through the Gulf.

Emirates introduced more flexible refund and date-change policies to support customer confidence. It also launched travel coverage that remains valid regardless of government travel advisories.

By September 30, the airline had restored most of its network, but capacity remained below pre-disruption levels. Emirates’ total capacity, measured in available tonne kilometres, was 10% lower at 28.2 billion.

The impact also extended to other tourism-related businesses. Emirates Flight Catering’s revenue from external customers fell 51% to AED 273 million as the number of airline meals supplied dropped 41%.

Emirates Leisure Retail and MMI revenue decreased 13% to AED 1.2 billion, reflecting weaker tourism traffic in the UAE during the period.

SkyCargo Revenue Jumps 52%

Cargo provided one of the strongest parts of the Emirates results.

Emirates SkyCargo transported 1.2 million tonnes during the first half, only 1% below the previous year. However, cargo revenue increased 52%.

Regional conflict reduced available freight capacity, while disruptions to maritime shipping encouraged companies to move more time-sensitive goods by air. The combination of constrained supply and higher demand supported cargo rates and revenue.

SkyCargo received five new Boeing 777 freighters and deployed its first passenger aircraft converted into a freighter. It also added Almaty and Zhengzhou to its dedicated cargo network and introduced freighter services to more than 15 existing Emirates destinations.

The cargo performance helped offset part of the decline in passenger revenue and demonstrated the value of Emirates Group’s diversified aviation operations.

Dnata Profit Falls 51%

Dnata, the group’s airport services, catering and travel business, also reported weaker results.

Pre-tax profit declined 51% to AED 410 million, while profit after tax fell 56% to AED 309 million. Revenue decreased 7% to AED 11 billion.

The number of aircraft turns handled by dnata dropped 8% to 414,012, while cargo volumes declined 6% to 1.49 million tonnes.

Dnata’s travel division generated AED 1.4 billion in revenue, down 31%, partly because of the disposal of Travel Republic and Netflights in the UK. Airport operations revenue decreased 3% to AED 5.4 billion, although international operations helped offset weaker activity at the company’s UAE hub.

Emirates Maintains Investment Despite Lower Profit

Emirates Group ended September with AED 54.1 billion in cash, down from AED 59.6 billion at the end of March. The company used its cash reserves for aircraft pre-delivery payments, debt servicing and the remaining AED 2 billion portion of its dividend to the Investment Corporation of Dubai.

The group continued investing in fleet expansion and cabin upgrades despite the difficult operating environment. Emirates received nine Airbus A350 aircraft and completed full cabin refurbishments on nine A380s and three Boeing 777s during the period.

Management said it entered the second half of the financial year with measured optimism but would continue monitoring fuel costs and geopolitical developments.

A sustained decline in oil prices and the normalization of Gulf airspace could improve margins and passenger traffic. However, renewed attacks on regional infrastructure or further restrictions on shipping and air travel would keep pressure on fuel expenses and operating capacity.

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