Dubai-based Emirates Group, which comprises Emirates airline and aviation services provider dnata, reported a 66% year-on-year drop in after-tax profit Thursday for the first half of its 2026-27 financial year, as disruptions from the Gulf conflict and elevated fuel costs weighed on its performance.

Net profit fell to AED 3.6 billion ($1 billion) during the April-September period, while pre-tax earnings stood at AED 4.1 billion ($1.1 billion), the group said.

Revenue declined 12% to AED 66.2 billion ($18 billion), following record financial results in the previous year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) dropped 41% to AED 12.5 billion ($3.4 billion).

Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum said the group remained profitable despite a sharp rise in global jet fuel costs and regional disruptions, supported by steady customer demand and strong cargo operations.

He said coordination with government authorities had helped restore air travel safely and ease travel restrictions across the region.

The group continues to invest in fleet expansion and product upgrades despite the challenging operating environment.

Sheikh Ahmed expressed cautious optimism for the remainder of the financial year, citing the group's financial resilience and liquidity.

Cash reserves stood at AED 54.1 billion ($14.7 billion) as of Sept. 30, down from AED 59.6 billion ($16.2 billion) at the end of March, following debt repayments, aircraft pre-delivery payments and a remaining AED 2 billion ($545 million) dividend payment to its owner.

The group's workforce declined 2% to 128,237 employees, although targeted recruitment continued.

Airline passenger numbers plunge

Emirates carried 21.8 million passengers during the six-month period, down 22% from a year earlier.

Overall capacity fell 10% to 28.2 billion available ton-kilometers, reflecting a reduced flight schedule.

Passenger capacity, measured in available seat kilometers, declined 17%, while traffic, measured in revenue passenger kilometers, dropped 25%.

The average passenger seat factor, a measure of how much available seating capacity was filled, fell to 72%, compared with 79.5% in the same period last year. (AA)