Emirates Group remained profitable in the first half of its 2026–27 financial year, but geopolitical disruption in the Gulf and higher aviation fuel prices significantly affected its results.

For the six months ended September 30, 2026, the Dubai-based group reported pre-tax profit of AED 4.1 billion (US$1.1 billion), down 66% year on year. Revenue fell 12% to AED 66.2 billion (US$18 billion), while EBITDA declined 41% to AED 12.5 billion (US$3.4 billion). Net profit after tax also dropped 66% to AED 3.6 billion (US$1 billion).

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Despite weaker performance, the group maintained cash reserves of AED 54.1 billion (US$14.7 billion) at the end of September, compared with AED 59.6 billion in March. It also completed a AED 3.5 billion dividend payment to its owner, the Investment Corporation of Dubai, for 2025–26.

Cautious Optimism For The Second Half

Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and the Emirates Group, said resilient passenger demand and cargo performance helped sustain revenue and liquidity, despite global jet fuel prices doubling year on year.

He credited the UAE government’s response with helping air transport resume safely following military operations in the Gulf. As travel advisories eased, Emirates and its aviation services subsidiary dnata continued investing in fleet expansion, customer services and operational capabilities.

Al Maktoum said the group was entering the second half with “cautious optimism”, while continuing to monitor costs and geopolitical developments. The group had 128,237 employees at September 30, 2% fewer than in March.

Emirates Airline Restores Its Network And Invests In Its Fleet

Emirates Airline recorded pre-tax profit of AED 3.7 billion (US$1 billion), down 68% year on year. Revenue declined 13% to AED 56.9 billion (US$15.5 billion), while net profit after tax fell 66% to AED 3.3 billion (US$903 million).

Airspace restrictions, airport closures and travel advisories disrupted schedules and passenger demand. By September 30, the airline had restored 91% of its pre-disruption network, serving 150 airports across 78 countries and territories.

During the period, Emirates took delivery of nine Airbus A350s and completed cabin refurbishments on 12 aircraft. Its wider refurbishment programme represents a planned investment of more than US$7 billion. The airline also expanded its Starlink Wi-Fi installation, bringing the number of equipped aircraft to 57.

In May, Emirates began construction of a US$5.1 billion engineering and maintenance facility at Al Maktoum International Airport, expected to be completed in the mid-2030s. Customer-focused initiatives included expanding Premium Economy, opening redesigned lounges in three European cities and extending its Travel Rehearsals programme for young travellers with autism to 47 locations worldwide.

Cargo Provides A Bright Spot Amid Lower Passenger Traffic

Emirates’ overall capacity declined 10% to 28.2 billion available tonne kilometres. Passenger traffic fell 25%, while the airline carried 21.8 million passengers, down 22% year on year. Its seat load factor decreased from 79.5% to 72%.

Cargo operations were more resilient. Emirates SkyCargo transported 1.2 million tonnes, a marginal 1% decline, while cargo revenue increased 52%. Regional disruption restricted air freight capacity, while interruptions to maritime shipping encouraged businesses to use air cargo alternatives.

The airline added five Boeing 777 freighters, introduced its first passenger-to-freighter conversion and expanded services to new destinations, including Almaty and Zhengzhou.

Higher Fuel Costs Continue To Pressure Margins

Although overall operating costs declined 2%, Emirates’ fuel expenditure increased sharply. Consumption fell 12%, but spending before hedging gains rose 60% compared with the previous six-month period.

Gains of AED 7.1 billion from its fuel price risk management strategy limited the net increase in fuel costs to 13%. Fuel nevertheless remained the airline’s largest expense, accounting for 34% of total costs.

Other businesses also faced weaker demand. Emirates Flight Catering’s external revenue fell 51% to AED 273 million, while Emirates Leisure Retail and MMI reported a 13% decline to AED 1.2 billion, reflecting lower tourist traffic in the UAE.

dnata’s International Operations Offset Regional Weakness

Aviation services subsidiary dnata reported pre-tax profit of AED 410 million (US$112 million), down 51% year on year. Revenue fell 7% to AED 11 billion (US$3 billion), while net profit after tax declined 56% to AED 309 million (US$84 million).

International operations helped offset weaker activity in the UAE and wider Gulf. During the period, dnata secured cargo-handling work in Singapore, an in-flight catering contract with Cathay Pacific at airports in the UK and US, and a seven-year ground-handling licence at Amsterdam Schiphol Airport.

The company also continued investing in logistics infrastructure, including a AED 100 million facility in Dubai South and a A$32 million cargo facility at Western Sydney International Airport.

Airport operations remained its largest business, generating AED 5.4 billion in revenue, down 3%. Catering and retail revenue increased 1% to AED 4.2 billion, while travel services revenue fell 31% to AED 1.4 billion, largely following dnata’s exit from UK travel businesses Travel Republic and Netflights.

Emirates Marks 32 Years In Cyprus

Emirates has served Cyprus since 1994, carrying more than 2.1 million passengers over 32 years of operations on the island.

During the reporting period, the airline also continued community initiatives supporting young people and vulnerable communities, while extending its sponsorship agreements with Arsenal Football Club and Real Madrid.