Fuel hedges turned a likely loss into a profit for Emirates. The war’s full cost will show only once that cover runs out.
Net profit fell 66% to $899 million on revenue down 13%, with AED 7.1 billion ($1.93 billion) in hedging gains holding the result above water; pre-hedge fuel costs rose 60%, and hedging cut the net increase to 13%. Passengers fell 22% to 21.8 million and seat factor dropped to 72% from 79.5% as airspace closures and government advisories pushed connecting traffic toward Istanbul, Singapore, and other hubs. Emirates had restored 91% of pre-war routes by September 30.
Cargo revenue rose 52% on tonnage down 1%, and Emirates kept investing — nine A350 deliveries, 12 retrofits within a $7 billion-plus program, Starlink on 36 more aircraft, and an untouched order book of more than 340 aircraft.
Pre-hedge fuel costs rose 60% year over year; hedging cut the net increase to 13%, with fuel still 34% of operating cost. Cargo was the bright spot: tonnage fell 1% but revenue rose 52% as conflict squeezed airfreight capacity and shipping disruption pushed volume to air. Emirates kept spending through the downturn, taking nine A350s, refitting 12 aircraft under a $7 billion-plus retrofit program, and adding Starlink to 36 more aircraft.
The Dubai-based carrier’s revenue fell 13% to AED 56.9 billion ($15.5 billion) in the half, despite what it described as strong cargo performance and enduring travel demand across its markets. “It has been a demanding six months,” Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO, said in a statement on Thursday, citing “unprecedented regional challenges and high fuel prices.”