Emirates Group recorded a sharp decline in profit during the first six months of the 2026/2027 financial year, primarily due to the impact of the conflict in the Gulf region, airspace restrictions, and significantly higher fuel prices. Despite challenging operating conditions, the Group remained profitable, although its financial performance was considerably weaker than during the record-breaking period a year earlier.

According to financial results published on November 5, Emirates Group reported a profit before tax of AED 4.1 billion (US$ 1.1 billion), representing a 66% decrease compared with the same period of the previous year. Total revenue declined by 12% to AED 66.2 billion (US$ 18 billion), while profit after tax amounted to AED 3.6 billion (US$ 1 billion).

Most of the decline was attributable to weaker financial performance at Emirates airline, whose profit before tax fell by 68%, from AED 11.4 billion to AED 3.7 billion. The airline’s revenue decreased by 13% to AED 56.9 billion, while EBITDA declined by 41% to AED 11.5 billion.

Operations were particularly affected by intermittent airspace closures and restrictions across the Middle East, as well as government travel advisories discouraging travel through the region. These circumstances led to reduced flight schedules and changes in passenger traffic flows, forcing Emirates to adjust its network and operational capacity.

Between April 1 and September 30, 2026, Emirates carried 21.8 million passengers, a decrease of 22% compared with the previous year. Capacity measured in available seat kilometres declined by 17%, while passenger traffic measured in revenue passenger kilometres fell by 25%. The average passenger load factor stood at 72%, compared with 79.5% during the corresponding period last year.

Nevertheless, the airline gradually restored its operations, recovering 91% of its pre-disruption network by the end of September. At that point, Emirates served 150 airports across 78 countries and territories.

In addition to lower passenger traffic, fuel prices placed significant pressure on profitability. According to the company, global jet fuel prices doubled compared with the same period a year earlier. Although Emirates consumed 12% less fuel due to reduced operations, its total fuel costs before hedging gains increased by as much as 60%.

Fuel price hedging instruments helped mitigate the impact, generating gains of AED 7.1 billion and limiting the net increase in fuel costs to 13%. Fuel remained the airline’s largest individual operating expense, accounting for 34% of total operating costs.

Unlike passenger operations, cargo transport proved considerably more resilient to the disruptions. Emirates SkyCargo transported 1.2 million tonnes of cargo, just 1% less than a year earlier, while revenue from this segment increased by as much as 52%. This was driven by a combination of reduced regional air cargo capacity and increased demand for air freight as a result of disruptions to maritime transport.

During the reporting period, Emirates strengthened its cargo fleet with the delivery of five new Boeing 777 freighters and the introduction of its first passenger aircraft converted into a freighter. The cargo network was expanded with new destinations in Almaty and Zhengzhou, while dedicated freighter services were introduced to more than 15 existing Emirates destinations.

Despite weaker financial results, Emirates continued investing in fleet renewal and improvements to its passenger product. During the first six months of the financial year, the airline received nine new Airbus A350 aircraft and completed cabin refurbishments on nine Airbus A380s and three Boeing 777s. The total planned investment in its cabin modernisation programme exceeds US$ 7 billion.

The airline also continued rolling out Starlink satellite internet connectivity, installing the system on an additional 36 aircraft during the reporting period. This brought the total number of Emirates aircraft equipped with Starlink to 57 by the end of September. The company also broke ground on a new US$ 5.1 billion aircraft maintenance facility at Al Maktoum International Airport, with completion expected in the mid-2030s.

Profitability also declined at dnata, the other major business division of Emirates Group, which provides ground handling, airline catering, and travel services. Its profit before tax fell by 51% to AED 410 million, while revenue decreased by 7% to AED 11 billion. The number of aircraft movements handled declined by 8% to approximately 414,000, while cargo volumes fell by 6% to 1.49 million tonnes.

Despite these developments, dnata continued expanding internationally, including securing a seven-year ground handling licence at Amsterdam Schiphol Airport and investing in new cargo and logistics facilities.

Across Emirates Group, the workforce decreased by 2% compared with the end of March, reaching 128,237 employees, although the company stated that both Emirates and dnata continue recruiting according to operational requirements. The Group ended the first half of the financial year with cash reserves of AED 54.1 billion, equivalent to US$ 14.7 billion.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Group, described the past six months as a particularly demanding period for the company. He emphasised that resilient travel demand and the contribution of cargo operations helped maintain profitability despite geopolitical challenges and rising fuel prices.

Emirates Group enters the second half of the financial year with cautious optimism, supported by strong liquidity, continued investment, and the gradual recovery of air traffic through its Dubai hub. However, its future financial performance will largely depend on the stabilisation of security conditions in the Middle East and developments in global jet fuel prices.