Emirates Group has reported a 66% year-on-year decline in first-half profit, as the war in the Middle East, soaring fuel costs and disruption to regional airspace put pressure on its aviation operations.

The UAE-based group said in a statement on Thursday that its half-year profit after tax fell to AED 3.6 billion ($1 billion).

The Dubai-based group, which owns the largest airline in the Middle East, said Emirates airline's half-year profit before tax dropped 68% to AED 3.7 billion, eroded by high fuel prices.

Since the Middle East war began in late February, energy prices have soared as Iran's blockade of ships in the strategically important Strait of Hormuz disrupted supply.

However, the wider group's revenue was less affected, declining 12% to AED 66.2 billion, buoyed by a strong performance in its cargo business.

During the early months of the war, the United Arab Emirates bore the brunt of Iranian drone and missile attacks, disrupting flights and deterring visitors to Dubai, which has become a major tourist hub in recent decades.

Passenger traffic between April and September fell 22% compared with the same period last year, to 21.8 million passengers.

"The first six months of 2026-27 brought significant challenges to Emirates' operations as intermittent airspace restrictions and closures across the region tested the airline's operational agility, while government travel advisories reshaped consumer choices and travel flows," the group said.

The airline, one of the world's largest by international passenger traffic, described its performance as "remarkable" in light of the war.

The group said it had been able to draw on strong cash reserves to support its business needs, including pre-delivery payments for aircraft and servicing debt obligations.

Source: https://iol.co.za/business/2026-11-05-emirates-group-profits-plunge-66-as-middle-east-war-and-fuel-costs-hit-airline-operations/