Emirates posts bumper profit despite war disruption

• Annual profit up 7%
• Fuel needs hedged for 3 years
• Twenty-week bonus for staff

Dubai flag carrier Emirates Airline posted record annual profits on Thursday despite months of disruption caused by the Iran conflict and mounting pressure from volatile jet fuel markets.

The airline, widely seen as a bellwether for global aviation demand, said profit before tax rose 7 percent to AED22.8 billion ($6.2 billion) in the year to March 31.

The results follow one of the most turbulent periods for Gulf aviation since the Covid-19 pandemic, with airspace closures, missile and drone attacks and widespread flight disruptions affecting operations across the Middle East during the final weeks of Emirates’ financial year.

“Despite an extremely challenging March before our financial year ended, Emirates retains its place as the world’s most profitable airline,” Emirates Group chairman Sheikh Ahmed bin Saeed Al Maktoum said in a statement.

The carrier continued operating throughout much of the conflict, although regional route changes and airspace restrictions increased operating complexity and costs.

Revenue rose 2 percent to AED131 billion, while cash assets climbed 10 percent to a record AED55 billion.

Emirates carried 53 million passengers during the year (down 1 percent on 2024/25), with seat capacity 1 percentage point lower.
The airline reported a passenger seat factor – the percentage of available seating capacity filled by paying passengers – of 78 percent, a marginal decline from 79 percent last year. Passenger revenue yield was higher by 4 percent at 38 fils (10.4 US cents) per passenger kilometre.  

At group level, which includes ground handling and catering business dnata, Emirates Flight Catering and MMI/Emirates Leisure Retail, profit before tax rose 7 percent to AED24.4 billion on revenue of AED150 billion. Overall the group’s cash reserves stood at AED59 billion at the end of March.

“That’s not a buffer, that’s a fortress,” said Linus Bauer, founder of consultancy BAA & Partners.

The Emirates Group declared a dividend of AED3.5 billion to its owner, the Investment Corporation of Dubai, while staff were rewarded with a bonus worth 20 weeks of salary.

Emirates

The airline industry has faced sharp swings in fuel pricing since the Iran conflict began on February 28, driving renewed concern over energy supply routes and refinery capacity across the Gulf.

Jet fuel in the Middle East cost $177 per barrel in the week ending May 1, according to the International Air Transport Association, up 111 percent year-on-year.

It remains Emirates’ single biggest variable cost. The airline said a $1 movement in the oil price has an adverse impact of about AED327 million on profitability.

Emirates has hedged part of its expected fuel needs for up to the next three years. At the end of March, these fuel hedging contracts were worth AED45 billion in total. About half of its expected Brent crude fuel costs for each of the next three years had already been locked in.

“We have worked with our suppliers to secure the volumes required to support our current operations and our scaling up to pre-disruption levels,” said Sheikh Ahmed.

Further reading:

• Local carriers stand to gain in Gulf’s changing aviation market
• Airbus deliveries fall short and first-quarter profits dive
• Airlines face fare pressure as jet fuel prices rise

The UAE’s aviation sector was hit hard during the conflict. Dubai Airports earlier reported a 20 percent drop in first-quarter passenger traffic, while airlines across the region were forced to reroute flights around closed airspace in Iran, Iraq and parts of the Gulf.

“We hope for a clear resolution to the hostilities soon, and a return to market stability. But in the meantime, we are not sitting on our hands,” said Sheikh Ahmed.

To date, Emirates has restored 96 percent of its global network following the disruption caused by the conflict. The airline operates to 137 destinations across 72 countries, with more than 1,300 weekly frequencies, representing 75 percent of pre-disruption capacity.

Dnata, meanwhile, reported a 2 percent increase in profit before tax to AED1.6 billion, helped by growth in cargo handling and international airport operations.