It goes without saying that it has been a tough year for airlines, due to the United States getting into a war with Iran. All airlines have been dealing with higher jet fuel prices, but airlines in the Gulf region have of course been dealing with additional issues, as all kinds of airports in the region have been attacked, making some people reconsider traveling through the region.
That’s why I think it’s interesting to note that Emirates has just released its financial results for the first half of the fiscal year (April 1 through September 30, 2026). Yes, Emirates’ profits decreased massively, but surprisingly, the airline still turned a healthy profit, and the numbers look much better than I would’ve guessed.
Emirates reports $1 billion profit, down 66%
Prior to this year, Emirates was the world’s most profitable airline for two years in a row, as the carrier really is incredibly well run.
That’s why I think it’s interesting to note how the airline performed over the first six months of the current fiscal year, which coincides entirely with the current Iran conflict. While there are results for the overall Emirates Group (which also includes dnata, etc.), I’m focusing on the airline specifically, since I find that to be most telling.
Emirates reported a half-year profit of $1 billion, down 68% compared to the previous year. Interestingly, revenue was $15.5 billion, down “only” 13% compared to the same period the previous year. The airline didn’t actually cut back its total capacity that much — available seat kilometers (ASKM) decreased by 17% compared to the previous year, while the passenger load factor decreased to 72%, from 79.5% the previous year. Emirates carried 21.8 million passengers over the six months, down 22% from the same period last year.
As of September 30, 2026, Emirates is operating 91% of its pre-disruption network, with the passenger and cargo network spanning 150 airports in 78 countries. However, that reflects the number of destinations, rather than the total actual capacity (in other words, many destinations are being operated with reduced frequencies).
Emirates CEO Sheikh Ahmed bin Saeed Al Maktoum reflected on this as “a demanding six months,” and said that “once again our business model and our people stood up to the test.” He explained that the company is entering the second half of the fiscal year “with measured optimism,” “while keeping a close watch on costs and geopolitical developments.”
These are impressive financial results, all things considered
One would think that Gulf carriers are in the toughest spot of any airline, given that they’ve been so reliant on connecting people traveling between other regions, and at least among some people, their willingness to travel through the region has decreased, assuming it can be avoided.
Admittedly many people also just live in this region, so it’s not like there are endless options. But when you consider all factors, I’d say these are very encouraging results, much better than I would’ve expected.
I know there’s often a lot of skepticism when it comes to the reported financials of Gulf carriers. I do think at some Gulf carriers, there’s reason to be skeptical about the math, based on what is and isn’t reported.
In the case of Emirates, though, the airline is legitimately very profitable and well run. The airline has managed to efficiently scale its operation in a way that no other airline really has, and that’s where credit goes for the carrier’s success.
Of course we have to acknowledge that there’s a difference in underlying economics. Dubai (DXB) is much lower cost to operate out of than somewhere like London Heathrow (LHR) or New York Kennedy (JFK), and Emirates Group owns both the airline and the ground handling company. Furthermore, the cost of jet fuel is lower in Dubai than it is in somewhere like London, and I imagine the airline also has access to more attractive financing opportunities, given that it’s owned by the government.
However, that’s hardly anything that’s super hidden or secret. I mean, economics in US aviation are also sort of lopsided. Airline profits are largely reliant on everything except actually flying, which is a privilege and upside that most foreign carriers can’t fully unlock.
I think it’s also interesting to note how well Emirates’ yields have held up during this time. For example, just based on looking at fares through Google Flights, it seems like Etihad’s strategy has just been to publish incredibly low fares to fill seats, including in premium cabins. I haven’t found that to be the case with Emirates, though, as the airline has managed to maintain pricing power despite reduced demand.
Bottom line
Emirates has reported its financial results for the first half of the 2026-2027 fiscal year. As you’d expect, this was a generally tough time for a Gulf carrier, given the current war with Iran. While Emirates’ profits were cut by around two-thirds, the airline still turned a healthy profit of around $1 billion.
Honestly, the actual operating figures don’t at all reflect what you’d expect during a crisis, so it seems like the airline is weathering this story pretty well, all things considered. I do feel like Emirates is uniquely positioned among its competitive set, and I’d be shocked if the story is similar at Etihad or Qatar Airways.
What do you make of Emirates’ financial results?
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