Emirates Group profits fall as cargo revenue surges amid shipping disruptions

Emirates Group reported a sharp decline in earnings for the first half of its 2026–2027 financial year, as the conflict in the Gulf region, airspace restrictions and elevated fuel costs weighed on its operations. However, its air cargo business recorded a substantial increase in revenue as disruptions to maritime transport contributed to stronger demand for alternative freight capacity.

The Dubai-based group recorded a pre-tax profit of AED 4.1 billion (US$1.1 billion) for the six months ended 30 September 2026, representing a 66% decline from the corresponding period last year. Revenue decreased 12% to AED 66.2 billion (US$18.0 billion), while profit after tax fell to AED 3.6 billion (US$1.0 billion).

Group EBITDA declined 41% to AED 12.5 billion (US$3.4 billion), compared with AED 21.1 billion a year earlier. Despite the reduction in earnings, Emirates Group maintained a substantial cash position of AED 54.1 billion (US$14.7 billion) at the end of September.

The financial performance reflected reduced aviation activity, higher fuel costs and changes in regional transport flows, although the group’s cargo operations benefited from market conditions created partly by the disruption of maritime supply chains.

SkyCargo revenue rises despite marginal decline in volumes

Emirates SkyCargo transported approximately 1.2 million tonnes of freight during the first six months of the financial year, a decline of just 1% compared with the same period in 2025.

Despite the slightly lower volumes, cargo revenue increased by 52%, reflecting stronger freight market conditions during the regional conflict.

According to Emirates, the conflict reduced available international air freight capacity while disruptions to maritime transportation encouraged shippers to seek alternative air cargo solutions.

The combination of constrained capacity and increased demand for air transport supported cargo revenue, even as the airline’s wider passenger operations faced significant disruption.

During the six-month period, Emirates SkyCargo expanded its freighter capacity through the delivery of five new Boeing 777 freighters and the deployment of its first passenger-to-freighter converted aircraft.

The cargo division also added Almaty and Zhengzhou to its freighter network, introduced dedicated freighter services to more than 15 existing Emirates destinations and increased frequencies in several markets, including the Far East.

These developments strengthened the airline’s cargo capabilities at a time when supply chain disruptions were changing transportation requirements across international trade routes.

Regional conflict weighs on airline profitability

Emirates airline reported a pre-tax profit of AED 3.7 billion (US$1.0 billion), down 68% from AED 11.4 billion in the corresponding period of the previous financial year.

Airline revenue declined 13% to AED 56.9 billion (US$15.5 billion), reflecting the impact of intermittent airspace restrictions, regional instability and changes in passenger travel demand.

By 30 September, Emirates had restored operations across 91% of its pre-disruption network, serving 150 airports in 78 countries and territories.

Passenger numbers declined 22% year on year to 21.8 million, while overall capacity, measured in available tonne kilometres, decreased 10%.

Higher fuel prices also placed significant pressure on earnings. Although fuel uplift declined 12% because of reduced operations, the airline’s fuel costs before hedging gains increased 60% compared with the previous year.

Emirates recorded AED 7.1 billion in gains from its fuel price risk management strategy, limiting the net increase in fuel costs to 13%. Fuel represented 34% of the airline’s total operating costs during the period.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, said cargo operations had made a strong contribution despite the challenging regional environment.

The group continued investing in aircraft, facilities and operational capabilities while working to restore its international network.

dnata cargo operations face lower volumes

The group’s ground handling and logistics business, dnata, also experienced weaker financial performance during the period.

dnata reported revenue of AED 11.0 billion (US$3.0 billion), a decline of 7%, while pre-tax profit decreased 51% to AED 410 million (US$112 million).

Across its airport operations, dnata handled 1.49 million tonnes of cargo, representing a 6% decline year on year. The number of aircraft turns handled decreased 8% to 414,012.

Despite these reductions, dnata continued developing its international cargo infrastructure and logistics operations.

The company commissioned a new AED 100 million (US$27 million) logistics facility in Dubai South and announced an AU$32 million investment in a new cargo facility at Western Sydney International Airport.

It also progressed plans for an AED 37 million investment in Alat, Azerbaijan, alongside cargo-related developments at East Midlands Airport and Zurich Airport.

In Singapore, dnata secured a multi-year cargo partnership with Silk Way Group, while its airport operations business obtained a seven-year ground handling licence at Amsterdam Schiphol Airport.

Emirates maintains investment despite lower earnings

The wider Emirates Group continued investing in fleet renewal, aviation infrastructure and technology despite the financial impact of the regional conflict.

During the first half, Emirates received nine Airbus A350 aircraft and completed cabin refurbishments on 12 existing aircraft. It also began construction of a US$5.1 billion engineering and maintenance facility at Al Maktoum International Airport, with completion expected in the mid-2030s.

At the end of September, the group’s cash position stood at AED 54.1 billion, compared with AED 59.6 billion at the end of March 2026.

The reduction reflected financial requirements associated with aircraft deliveries, debt servicing and shareholder distributions, among other business needs.

Emirates Group enters the second half of its financial year facing continued uncertainty over fuel costs and regional operating conditions.

For the international freight sector, the results illustrate the contrasting effects of geopolitical disruption. While restrictions on aviation activity and higher fuel prices weakened overall profitability, pressure on maritime transport networks and reduced air cargo capacity helped support significantly higher freight revenue.

The figures also highlight the importance of distinguishing between cargo volume growth and revenue performance, with Emirates SkyCargo recording a substantial increase in revenue despite handling slightly less freight than a year earlier.