Dubai's Emirates airline has posted a record annual profit as strong demand has pushed up revenue despite the war affecting the last month of the fiscal year.
Profit for the year ended March 2026 rose to Dh19.7 billion ($5.4 billion), up more than 3 per cent, the airline said.
Revenue rose 2 per cent to Dh130.9 billion during the year, as the airline “strategically” used its capacity to serve surging demand across markets, it said on Thursday.
This is the “best profit performance” in the airline’s history, Emirates said. The airline retains its place as the “world’s most profitable airline”, it added.
The wider Emirates Group, which includes dnata, posted a 3 per cent increase in 2025 profits after tax to Dh21 billion.
The group recorded revenue of Dh150.5 billion, up 3 per cent on 2024. It also declared a dividend of Dh3.5 billion to its owner, the Investment Corporation of Dubai (ICD).
“For the first 11 months of 2025-26, the picture across the group was very positive. Strong demand for our products and services was driving revenue,” said chairman and chief executive Sheikh Ahmed bin Saeed.
“On February 28, military activity massively disrupted global commercial air traffic in the Gulf region, including in the UAE. We are fortunate to be based in Dubai, where years of infrastructure investments and a cohesive aviation ecosystem has enabled the government to quickly secure safe corridors for commercial flights.”
He added that Emirates and dnata have since “gradually restored operations” at DXB. “Although we are still operating at a lower passenger capacity than pre-disruption, cargo operations have ramped up to support the movement of essential goods into and through the UAE,” Sheikh Ahmed said.
Headwinds from war
Air travel to and from the Middle East, especially in the Gulf, was hit significantly after the US and Israel began their offensive against Iran on February 28, forcing the closure of airports and airspace. Having been gradually reintroduced, operations are now largely restored to prewar levels.
This week, Dubai International Airport, the world’s busiest, reported a 66 per cent drop in passenger numbers for March. But with the UAE civil aviation authorities this month reopening the entire airspace and lifting restrictions on capacity, Dubai Airports chief executive Paul Griffiths told The National a rapid return to full capacity is now expected.
Emirates president Tim ClarkTim Clark also recently said the carrier is banking on its history of rebounding quickly from crises, as well as the appeal of Dubai. He brushed off concerns about jet fuel shortages for Emirates. Once the Strait of Hormuz reopens, there should be one to two months of disruption before things return to normal, Mr Clark said. The effective closure of the Strait of Hormuz, through which about a fifth of the world's oil shipments pass, has halted exports to airlines in other countries.
Sheikh Ahmed said Emirates was “well-hedged until 2028-29” and that the airline had worked with its suppliers to “secure the volumes” required to support current operations.
“Emirates has steadily built its network up to almost 100 per cent, but the looming prospect of a continuation of the war if no deal can be reached remains very real,” Saj Ahmad, chief analyst at Strategic Aero Research, told The National. “The impact will be felt later in the year when Emirates reports is first-half earnings in November.”
The state-owned airline carried more than 53.2 million passengers during the 2025-26 fiscal year, down 1 per cent from a year ago, due to the Iran war. Load factor, the measure of how well an airline fills available seats with paying passengers, declined marginally to 78.4 per cent from 78.9 per cent in the previous fiscal year.
Emirates also continued to expand its network, adding four new destinations during the year – Da Nang, Hangzhou, Siem Reap and Shenzhen. By the end of March, Emirates’ network spanned 152 cities in 80 countries. The airline also increased its collaborations to 32 codeshare and 117 interline partners.
Strong cash reserve
Looking ahead, the Emirates group is entering 2026-27 with “very strong cash reserves, which will enable us to progress with our plans to strengthen our business without knee-jerk cost-control measures,” Sheikh Ahmed said.
“Right now, military activities between the US, Israel and Iran are paused under a ceasefire agreement. 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.
“Our fundamentals are strong. The Emirates Group’s proven business model is unchanged. Dubai’s place at the nexus of global commerce, trade and travel flows is unchanged.”
In 2025, the group collectively invested Dh17.9 billion in new aircraft, facilities, equipment and the latest technology to support its growth plans, it said.
Fleet growth
Emirates increased its passenger fleet during the fiscal year, with the delivery of 15 Airbus A350s. The total fleet at year-end was 277, with an average age of 10.8 years.
At last year's Dubai Airshow, Emirates announced further fleet investment worth $41.4 billion at list prices – for 65 more Boeing 777-9s and eight more A350-900 planes. As of March 31, Emirates’ order book had 367 aircraft, comprising 54 A350s, 270 of Boeing's 777x, 35 787s and eight 777Fs, with deliveries scheduled through to 2038.
Emirates’ aircraft deliveries and retrofit programme, as well as its planned investments in new facilities and equipment, will continue, Sheikh Ahmed said.
Meanwhile, Emirates SkyCargo, the airline’s cargo arm, carried 2.4 million tonnes of goods during the current fiscal year, up 3 per cent from the previous year. The delivery of five new Boeing 777 freighters during the year enabled the division to grow its freighter capacity by 13 per cent, Emirates said. However, cargo yields decreased by 3 per cent due to market pressure and the impact of tariffs on trade.
