The UAE’s Emirates Group announced on Thursday that its profits for the first half of the financial year have declined by 66 percent compared to the same period last year. The Dubai-based conglomerate, which operates the largest airline in the Middle East, reported a half-year profit after tax of 3.6 billion AED, equivalent to $1 billion. This downturn marks the most significant drop in earnings for the group since the aviation industry was impacted by travel restrictions during the 2020 pandemic.
Emirates airline specifically saw its profit before tax fall by 68 percent to 3.7 billion AED, a result the group attributed to the burden of high fuel prices. Energy costs have surged since the outbreak of the war in the Middle East in late February, exacerbated by a blockade on shipping in the Strait of Hormuz that disrupted supply chains. Furthermore, the United Arab Emirates faced drone and missile attacks during the early months of the conflict, which led to flight disruptions and a decline in tourism for the city of Dubai.
Passenger traffic between April and September fell by 22 percent year-on-year, totaling 21.8 million passengers. Despite these challenges, the group’s total revenues experienced a smaller decline of 12 percent, reaching 66.2 billion AED, bolstered by a strong performance within its cargo division. Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum described the period as "demanding" and "unprecedented," yet emphasized that the group’s business model and workforce remained resilient.
The company noted that intermittent airspace restrictions and regional closures tested its operational agility, while shifting government travel advisories altered consumer travel patterns. To maintain customer confidence, the airline introduced industry-first travel insurance that remains valid regardless of government advisories, alongside flexible refund policies and free date changes on bookings. The group continues to utilize its cash reserves to support operations, including debt obligations and aircraft pre-delivery payments. Additionally, the organization has maintained its investment strategy, breaking ground in May on a new $5.1 billion engineering and maintenance facility at Al Maktoum International Airport, slated for completion in the mid-2030s.
