Emirates reported on Thursday that it achieved a record full-year net profit even as regional conflict constrained operations and increased costs. The Dubai-based carrier said profit after tax rose to $5.4 billion for the 12 months ending March, compared with $5.2 billion in the previous year. The airline attributed the result to stronger passenger yield that helped offset a slight decline in passengers carried, which stood at 53.2 million over the period.
The company said the onset of the U.S.-Israeli war with Iran on Feb. 28 led to major disruptions across the region. Those disruptions included temporary closures of airspace in the Middle East and a surge in jet fuel prices that raised costs for airlines. Emirates characterized the situation as the air travel industry’s largest crisis since the COVID-19 pandemic.
Major Gulf carriers, Emirates among them, have been restoring capacity gradually. The airline noted, however, that capacity remains below pre-war levels. The company also pointed to renewed attacks on the United Arab Emirates this week, saying the incidents have introduced uncertainty around a fragile ceasefire that had entered into effect last month.
Beyond the airline itself, Emirates Group reported record revenue of $41 billion, an increase of 3% from the prior year. The group will distribute total dividends of $1 billion to its owner, the sovereign wealth fund ICD.
The results highlight how higher yields on passenger flying can support profitability even when traffic volumes dip and operating costs rise due to fuel price spikes and operational rerouting. At the same time, the ongoing regional security situation and associated airspace and cost disruptions continue to constrain the pace at which carriers can restore capacity to pre-crisis levels.