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The Emirates Group reported a 66% decline in first-half profit for fiscal year 2026-27 as conflict in the Gulf region disrupted flight operations and higher fuel costs cut into profitability
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Group revenue fell 12% to AED 66.2 billion (US$18 billion) from AED 75.4 billion
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Emirates airline posted a 68% decline in profit before tax to $1 billion, while revenue dropped 13% to AED 56.9 billion
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Emirates SkyCargo revenue increased 52% despite a 1% decline in cargo volume to 1.2 million tonnes
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Services provider dnata recorded a 51% decline in profit before tax to $112 million
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Cash reserves stood at $14.7 billion as of end-September
The Emirates Group reported a 66% decline in first-half profit for fiscal year 2026-27 ending in March as the conflict in the Gulf region disrupted flight operations, and rising fuel prices weighed on profitability.
The Dubai-based aviation group posted a profit before tax of AED 4.1 billion (US$1.1 billion) for the six months ended September 30, 2026, down from the same period last year.
After income tax charges, the Group’s profit amounted to AED 3.6 billion ($1 billion), also 66% lower year on year.
Revenue fell 12% to AED 66.2 billion from AED 75.4 billion, while earnings before interest, taxes, depreciation and amortization (EBITDA) declined 41% to AED 12.5 billion.
The group attributed the weaker financial performance to operational disruptions from the ongoing regional conflict and higher fuel prices, although sustained customer demand and stronger cargo operations helped support revenue.
READ: Emirates posts record $6.6B profit in FY2025
“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,” His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and Group, said.
“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,” he added.
“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,” said Al Maktoum.
Continued investments
“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,” he highlighted.
He also said the group remained cautiously optimistic about the second half of the financial year, while continuing to monitor fuel prices and geopolitical developments.
He 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 ended the first half with cash reserves of $14.7 billion as of September 30, compared with $16.2 billion at the end of March.
It also completed the payment of the remaining AED 2 billion in dividends to its owner, the Investment Corporation of Dubai, out of the AED 3.5 billion declared for fiscal year 2025-26.
The Group’s workforce declined 2% to 128,237 employees as of September 30 compared with March 31, although Emirates and dnata continued recruitment to meet business requirements.
Emirates airline
Emirates airline recorded a profit before tax of AED 3.7 billion in the first half, down 68% from the previous year’s AED 11.4 billion.
Revenue, including other operating income, declined 13% to AED 56.9 billion from AED 65.6 billion.
The airline’s operations were affected by intermittent airspace restrictions and closures across the region, as well as government travel advisories that altered passenger travel patterns.
By September 30, Emirates had restored 91% of its pre-disruption network, operating flights to 150 airports in 78 countries and territories through its Dubai hub.
READ: Emirates almost back to full operations with 96% of flights restored
The airline carried 21.8 million passengers from April 1 to September 30, down 22% from the same period last year. Its available seat kilometers declined 17%, while passenger traffic, measured in revenue passenger kilometers, fell 25%. The average passenger seat factor dropped to 72% from 79.5%.
Overall capacity decreased by 10% to 28.2 billion available tonne-kilometers.
Emirates SkyCargo
Despite the operational challenges, Emirates SkyCargo delivered a stronger revenue performance. The cargo division transported 1.2 million tonnes during the period, down 1% year on year, but cargo revenue increased 52%.
The airline said the regional conflict reduced available airfreight capacity while disruptions to maritime transport prompted shippers to seek air cargo alternatives.
To expand its cargo operations, Emirates SkyCargo added five newly delivered Boeing 777 freighters and deployed its first passenger-to-freighter converted aircraft. It also expanded its freighter network to Almaty and Zhengzhou, introduced dedicated freighter services to more than 15 existing Emirates destinations and increased flight frequencies in several key markets, including the Far East.
READ: Emirates SkyCargo launches dedicated service for moving AI infra
Higher fuel prices remained a major drag on the airline’s earnings.
Although Emirates’ overall operating costs declined 2% in line with reduced operations, fuel expenses before hedging gains increased 60% from the previous year. This came despite a 12% reduction in fuel uplift.
Gains of AED 7.1 billion from its fuel price risk management strategy helped offset the increase, limiting the net rise in fuel costs to 13%. Fuel accounted for 34% of the airline’s total operating costs.
Emirates continued investing in its fleet and infrastructure despite the difficult operating environment. It received nine new Airbus A350 aircraft and completed cabin refurbishments on 12 aircraft, comprising nine A380s and three Boeing 777s.
The airline also continued its $7-billion-plus fleet retrofit program and advanced construction of its $5.1-billion engineering and maintenance facility at Al Maktoum International Airport.
dnata
Meanwhile, dnata, the group’s airport services, catering and travel services provider, reported a 51% decline in first-half profit before tax to AED 410 million.
Revenue, including other operating income, fell 7% to AED 11 billion from AED 11.7 billion a year earlier.
Its international operations helped cushion the impact of reduced airline and travel activity in the United Arab Emirates and the wider Gulf region.
Despite the weaker results, dnata continued expanding its international operations and cargo infrastructure.
Among its investments, the company commissioned an AED 100-million logistics facility in Dubai South and announced an AU$32-million investment in a new cargo facility at Western Sydney International Airport.
It also secured a seven-year ground-handling license at Amsterdam Schiphol Airport and signed several multi-year agreements covering cargo and inflight catering services.
