The Emirates Group has reported a profit before tax of AED 4.1 billion (US$1.1 billion) for the first half of its 2026-27 financial year, maintaining profitability despite regional conflict, operational disruptions and a sharp increase in global fuel prices.
The result, covering the six months ended September 30, 2026, represents a 66 per cent decline from the same period last year, when the Group recorded a record financial performance. Revenue also fell by 12 per cent to AED 66.2 billion (US$18 billion), compared with AED 75.4 billion (US$20.6 billion) a year earlier.
Profit after tax stood at AED 3.6 billion (US$1 billion), while earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 41 per cent to AED 12.5 billion (US$3.4 billion).
The Group attributed the weaker performance largely to the impact of geopolitical instability across the Gulf region, which disrupted flight operations and contributed to a significant rise in fuel costs. Despite these pressures, sustained customer demand and a strong contribution from cargo operations helped support revenue and cash generation.
At the end of September, the Group held cash reserves of AED 54.1 billion (US$14.7 billion), down from AED 59.6 billion (US$16.2 billion) at the end of March 2026. The funds supported operational requirements, aircraft pre-delivery payments and existing debt obligations. The Group also completed payment of the remaining AED 2 billion (US$545 million) dividend to its owner, the Investment Corporation of Dubai, from the AED 3.5 billion declared for the 2025-26 financial year.
Emirates Group Chairman and Chief Executive, Sheikh Ahmed bin Saeed Al Maktoum, described the six-month period as demanding, noting that the business had maintained profitability despite unprecedented regional challenges and higher fuel prices.
He credited the UAE government’s response and coordination with industry stakeholders for facilitating the safe resumption of air transport activities following military developments across the Gulf. He also said the Group had continued investing in its fleet, products and operational capabilities despite the difficult business environment.
The Group expects to remain focused on cost management, safety and customer service as it enters the second half of the financial year, while monitoring geopolitical developments and fuel price movements.
Emirates airline recorded a profit before tax of AED 3.7 billion (US$1 billion), down 68 per cent from AED 11.4 billion in the corresponding period last year. Revenue declined by 13 per cent to AED 56.9 billion (US$15.5 billion), compared with AED 65.6 billion (US$17.9 billion).
The airline’s operations were affected by intermittent airspace restrictions and closures, as well as travel advisories that influenced passenger movements and travel patterns. By September 30, Emirates had restored operations to 91 per cent of its pre-disruption network, serving 150 airports across 78 countries and territories through its Dubai hub.
Between April and September, the airline carried 21.8 million passengers, representing a 22 per cent decline compared with the same period last year. Available seat kilometres fell by 17 per cent, while passenger traffic, measured in revenue passenger kilometres, declined by 25 per cent. The average passenger seat factor also dropped to 72 per cent from 79.5 per cent a year earlier.
Despite the reduction in passenger operations, Emirates SkyCargo provided an important source of revenue growth. The cargo division transported 1.2 million tonnes during the period, down by just one per cent, while cargo revenue increased by 52 per cent. The airline attributed the performance to reduced airfreight capacity caused by regional conflict and increased demand for air cargo as shippers responded to disruptions in maritime transport.
Emirates SkyCargo expanded its freighter capacity with the delivery of five Boeing 777 freighters and the deployment of 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 destinations and increased frequencies across several key markets.
Higher fuel prices remained a significant pressure on the airline’s finances. Although overall operating costs declined by two per cent in line with reduced operations, fuel costs before hedging gains increased by 60 per cent. Gains of AED 7.1 billion from its fuel price risk management strategy helped cushion the impact, limiting the net increase in fuel costs to 13 per cent. Fuel accounted for 34 per cent of Emirates’ operating costs.
The airline continued its fleet and product development programme during the period, taking delivery of nine new Airbus A350 aircraft and completing cabin refurbishments on 12 aircraft, comprising nine A380s and three Boeing 777s. Its wider retrofit programme represents a planned investment of more than US$7 billion to upgrade cabins across its fleet.
Emirates also expanded its Starlink installation programme, equipping an additional 36 aircraft with high-speed inflight connectivity and bringing the number of Starlink-equipped aircraft to 57 by the end of September.
Further investment included the commencement of construction on a US$5.1 billion engineering and maintenance, repair and overhaul facility at Al Maktoum International Airport, with completion expected in the mid-2030s.
Meanwhile, ground services and travel services provider dnata recorded profit before tax of AED 410 million (US$112 million), a 51 per cent decline from the corresponding period last year. Revenue fell by seven per cent to AED 11 billion (US$3 billion), reflecting lower volumes in some of its UAE and UK operations.
Its airport operations remained the largest revenue contributor, generating AED 5.4 billion (US$1.5 billion), although this represented a three per cent decline. The division handled 414,012 aircraft turns, down eight per cent, and processed 1.49 million tonnes of cargo, a six per cent reduction.
Dnata’s catering and retail operations generated AED 4.2 billion (US$1.1 billion), representing a one per cent increase, supported by growth in inflight retail business with customers including easyJet and Aer Lingus. However, the number of meals uplifted declined by 10 per cent to 54 million, partly due to the loss of key contracts in the UK.
The travel division recorded revenue of AED 1.4 billion (US$373 million), down 31 per cent, largely reflecting the impact of the divestment of its Travel Republic and Netflights businesses in the UK. Its underlying total transaction value also declined by 22 per cent to AED 3.8 billion (US$1 billion).
Despite the downturn, dnata continued to pursue international expansion and operational investments. During the half-year, it secured a seven-year ground-handling licence at Amsterdam Schiphol Airport, signed new cargo and catering agreements, and commissioned a AED 100 million logistics facility in Dubai South.
The company also announced a AU$32 million investment in a new cargo facility at Western Sydney International Airport, while construction of its catering facility at the airport remained on track for a 2027 opening. Additional investments in technology, equipment and cargo infrastructure formed part of its wider strategy to strengthen its international operations.
The Emirates Group’s workforce stood at 128,237 employees at the end of September, two per cent lower than at the close of the previous financial year, although both Emirates and dnata continued recruitment to meet operational requirements.
The half-year results underline the pressure facing
