The Emirates Group reported a profit before tax of AED 4.1 billion (US$1.1 billion) for the first half of the 2026-27 financial year, despite significant operational disruption caused by the regional conflict and a sharp increase in global fuel prices.
For the six months ended 30 September 2026, Group revenue declined 12% year on year to AED 66.2 billion (US$18 billion), compared with AED 75.4 billion (US$20.6 billion) in the corresponding period last year.
Profit after tax also fell 66% to AED 3.6 billion (US$1 billion), while earnings before interest, taxes, depreciation and amortisation (EBITDA) reached AED 12.5 billion (US$3.4 billion), down 41% from AED 21.1 billion (US$5.7 billion) a year earlier.
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Despite the decline in profitability, cargo operations remained an important contributor to the Group’s financial resilience, with Emirates SkyCargo recording a 52% increase in cargo revenue even as freight tonnage edged down.
The results reflect the combined impact of reduced flight operations, geopolitical uncertainty, higher fuel expenditure and changes in international cargo and passenger traffic.
Cargo operations provide revenue support
Emirates SkyCargo transported approximately 1.2 million tonnes of freight during the first six months of 2026-27, representing a 1% decrease compared with the same period last year.
However, cargo revenue increased by 52%, supported by reduced air freight capacity across the market and growing demand from shippers seeking alternatives to disrupted maritime transport routes.
The performance highlights the strategic importance of the cargo division during a period when geopolitical developments have affected established international supply chains and increased demand for reliable air freight connections.
Emirates SkyCargo continued expanding its fleet and international network during the reporting period.
The division received five new Boeing 777 freighters and introduced its first passenger-to-freighter (P2F) converted aircraft into operations, adding dedicated capacity to its existing network.
Its freighter network was expanded with two new destinations, Almaty in Kazakhstan and Zhengzhou in China. The carrier also introduced dedicated freighter services to more than 15 existing Emirates destinations and increased frequencies across several important markets, particularly in the Far East.
These developments form part of the airline’s broader strategy to strengthen its dedicated freighter operations and expand its ability to serve international cargo markets.
Emirates restores 91% of pre-disruption network
Emirates continued working to restore its international operations following airspace restrictions and closures across the region.
By 30 September 2026, the airline had restored approximately 91% of its pre-disruption network, serving 150 airports across 78 countries and territories through its passenger and cargo operations.
Overall capacity, measured in Available Tonne Kilometres (ATKM), declined by 10% to 28.2 billion during the first half as the airline operated a reduced flying schedule.
Passenger capacity, measured in Available Seat Kilometres (ASKM), fell by 17%, while passenger traffic, measured in Revenue Passenger Kilometres (RPKM), declined by 25%.
Emirates carried 21.8 million passengers during the six-month period, down 22% year on year. Its average passenger seat factor decreased to 72%, compared with 79.5% in the corresponding period last year.
To rebuild customer confidence, the airline introduced additional travel flexibility, including comprehensive travel cover, free date changes on booked tickets and enhanced refund arrangements.
High fuel prices weigh on airline profitability
Emirates airline reported a profit before tax of AED 3.7 billion (US$1 billion), representing a 68% decline from the record AED 11.4 billion (US$3.1 billion) achieved in the first half of the previous financial year.
Revenue, including other operating income, declined 13% to AED 56.9 billion (US$15.5 billion), compared with AED 65.6 billion (US$17.9 billion) a year earlier.
The airline’s performance was supported by resilient demand, particularly for premium cabin travel, alongside the strong contribution from its cargo business.
However, rising fuel prices placed considerable pressure on operating expenses.
Despite a 12% reduction in fuel uplift due to lower flight activity, fuel costs before hedging gains increased by 60% compared with the previous half-year.
Gains of AED 7.1 billion from the airline’s fuel price risk management strategy helped reduce the net increase in fuel expenditure to 13%.
Fuel remained the largest component of Emirates’ operating costs, accounting for 34% of the total.
Fleet and infrastructure investments continue
Despite the challenging operating environment, Emirates maintained its investment programme to strengthen its fleet, passenger experience and long-term operational capabilities.
During the first half, the airline received nine new Airbus A350 aircraft and completed cabin refurbishments on 12 aircraft, comprising nine Airbus A380s and three Boeing 777s.
Its fleet retrofit programme represents a planned investment exceeding US$7 billion to introduce upgraded cabin products across its aircraft.
Emirates also continued installing Starlink high-speed connectivity, equipping 36 additional aircraft during the reporting period and bringing the total number of Starlink-equipped aircraft to 57 by 30 September.
In May, the airline broke ground on its planned US$5.1 billion engineering and Maintenance, Repair and Overhaul (MRO) facility at Al Maktoum International Airport. The project is expected to be completed in the mid-2030s and will support the airline’s future fleet maintenance requirements.
The company also introduced new cabin innovations, including an integrated U-dream headrest in Economy Class and electronically controlled privacy dividers in Premium Economy.
dnata expands international cargo and logistics capabilities
Emirates Group’s aviation services subsidiary, dnata, reported revenue of AED 11 billion (US$3 billion) for the first half of 2026-27, down 7% from AED 11.7 billion (US$3.2 billion) in the corresponding period last year.
Profit before tax declined 51% to AED 410 million (US$112 million), reflecting lower business volumes across certain operations in the UAE and the UK.
Its airport operations remained the largest contributor to revenue, generating AED 5.4 billion (US$1.5 billion), a 3% decline year on year.
Across its global operations, dnata handled 1.49 million tonnes of cargo, down 6%, while aircraft movements handled decreased by 8% to 414,012.
Despite the reduction in volumes, dnata continued investing in international cargo infrastructure and logistics capabilities.
In Dubai, the company commissioned a new AED 100 million (US$27 million) logistics facility in Dubai South and opened an integrated command centre to support its expanding cargo operations.
Internationally, dnata announced an AU$32 million investment in a new cargo facility at Western Sydney International Airport. Construction of a separate catering facility at the airport is also progressing, with an opening targeted for 2027.
The company is also planning an AED 37 million investment in Alat, Azerbaijan, while expanding cargo operations at East Midlands Airport in the UK and Zurich Airport in Switzerland.
Further strengthening its international partnerships, dnata signed a cargo agreement with Silk Way Group in Singapore and secured a seven-year ground-handling licence at Amsterdam Schiphol Airport.
The company also signed inflight catering agreements with Cathay Pacific covering several airports in the UK and the United States.
Group maintains substantial cash reserves
The Emirates Group closed the first half of 2026-27 with cash reserves of AED 54.1 billion (US$14.7 billion) as of 30 September, compared with AED 59.6 billion (US$16.2 billion) on 31 March 2026.
The Group used its financial resources to support operational requirements, aircraft pre-delivery payments and existing debt obligations. It also paid the remaining AED 2 billion (US$545 million) of the AED 3.5 billion dividend declared for the 2025-26 financial year to its owner, the Investment Corporation of Dubai.
The Group’s workforce stood at 128,237 employees at the end of September, representing a 2% decrease compared with March 2026. Both Emirates and dnata, however, continue recruitment programmes to meet operational requirements.
Management remains cautiously optimistic
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, said the six-month period had tested the organisation’s business model and workforce amid regional instability and significantly higher fuel prices.
He credited the UAE government with coordinating the safe restoration of air transport activities following military developments across the Gulf region.
Sheikh Ahmed also emphasised that the Group had continued investing in its fleet, products, services and future operational capabilities despite the challenging conditions.
Looking ahead, he said the Group would maintain a cautious approach to costs and geopolitical developments while focusing on safety, service quality and customer satisfaction.
With substantial cash reserves, continued fleet investment and a strong international network, the Emirates Group expects to remain positioned to manage the challenges of the second half of the 2026-27 financial year.
For the air cargo sector, the results underline the growing importance of diversified cargo networks, dedicated freighter capacity and flexible logistics infrastructure in maintaining international supply chains during periods of geopolitical and operational uncertainty.
