Emirates profit falls 66% as fuel costs rise

Emirates Group said Thursday in company first-half results that pre-tax profit fell 66% year on year to AED 4.1 billion ($1.1 billion) in the six months to Sept. 30.

The decline shows how Gulf security disruption and higher aviation fuel prices are weighing on Dubai aviation: group revenue fell 12% to AED 66.2 billion ($18 billion), from AED 75.4 billion a year earlier.

Earnings before interest, tax, depreciation and amortisation, a measure of operating cash generation, dropped 41% to AED 12.5 billion ($3.4 billion). Net profit after tax also fell 66% to AED 3.6 billion ($1 billion), the results showed.

“Despite unprecedented regional challenges and high fuel prices, the group recorded pre-tax profits of AED 4.1 billion (US$1.1 billion),” Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum said.

Emirates said it held AED 54.1 billion ($14.7 billion) in cash at Sept. 30, compared with AED 59.6 billion ($16.2 billion) at the end of March. The cash position was more than 13 times first-half pre-tax profit, according to Atlas360 calculations.

The group also paid the remaining AED 2 billion ($545 million) dividend to its owner, the Investment Corporation of Dubai, completing an AED 3.5 billion ($953 million) distribution approved for the 2025-26 financial year.

The airline unit reported pre-tax profit of AED 3.7 billion ($1 billion), down 68% from AED 11.4 billion ($3.1 billion) a year earlier. Revenue, including other operating income, fell 13% to AED 56.9 billion ($15.5 billion).

Emirates said airspace restrictions, regional closures and government travel advisories affected passenger movements. By Sept. 30, the airline said it was operating 91% of its pre-disruption network and serving 150 airports in 78 countries and territories.

Passenger capacity fell 17% in the half-year period, while passenger traffic declined 25%. The seat load factor dropped to 72%, from 79.5% a year earlier, and the airline carried 21.8 million passengers, down 22% year on year.

Cargo softened the downturn. Emirates SkyCargo transported 1.2 million tonnes in the six months, down 1%, while cargo revenue rose 52%, which the company attributed to lower regional air-freight capacity and more demand for air cargo alternatives during maritime disruption.

Fuel remained the main cost pressure. Emirates said fuel spending before hedging gains rose 60% despite a 12% drop in consumption, while AED 7.1 billion in fuel-risk-management gains limited the net fuel-cost increase to 13%. Fuel accounted for 34% of the airline’s operating costs.

The group continued long-term investment during the weaker half-year. Emirates received nine Airbus A350 aircraft, refurbished 12 aircraft and said its fleetwide cabin upgrade programme involves planned spending of more than $7 billion.

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

Dated milestones

Dnata said operations at its new catering facilities at Western Sydney International Airport are expected to begin in 2027. It also announced an A$32 million investment in a new cargo facility at the same airport.

Emirates said its new $5.1 billion engineering and maintenance, repair and overhaul facility at Al Maktoum International Airport is due for completion in the middle of the 2030s.