Emirates Group reported a 66% drop in its first-half net profit, falling to 3.6 พันล้านเดอร์แฮม, or approximately 1 พันล้านดอลลาร์, for the period ending in September, as reported by bangkokbiznews. The airline, which operates as the world’s largest international carrier, cited unprecedented regional instability and rising fuel costs stemming from the conflict involving Iran as the primary drivers of the decline.
Emirates cancels flights amid regional conflict
The conflict has forced a radical shift in the airline’s operational footprint. According to bangkokbiznews, Emirates has been compelled to cancel thousands of flights and undergo a comprehensive restructuring of its international network. The regional volatility caused some flights returning to the Dubai hub to operate with nearly empty cabins as passengers avoided travel to the Middle East. Additionally, the closure of Dubai International Airport during periods of heightened tension directly contributed to the company’s performance missing internal targets, a situation that has subsequently led to a reduction in staff bonuses.
As of Thursday, Emirates announced that it has restored 91% of its flight routes compared to pre-conflict levels. Despite this progress, the airline remains cautious regarding the second half of the fiscal year. Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of the Emirates Group, noted that the company is bracing for continued pressure from high fuel prices and the ongoing risk of further escalation between the United States, Israel, and Iran.
Global aviation industry ripple effects
The instability in the Middle East has triggered a wider contraction in international air travel. Reports from mgronline and Head Topics indicate that airlines from at least 25 countries have suspended or reduced services to the region, with some carriers extending these cancellations well into 2027. The scope of the disruption extends far beyond regional carriers, affecting major international airlines that are now reassessing safety risks and logistics for their global networks.
| Airline | Route Impact | Status/Suspension Date |
|---|---|---|
| Air France | Dubai / Riyadh | Nov 7 (Dubai) / Dec 12 (Riyadh) |
| KLM | Dubai / Riyadh / Dammam | Mar 27, 2027 (Dubai) / Nov 27 |
| Lufthansa | Dubai / Riyadh / Dammam | Nov 25 / Nov 18 / Nov 30 |
| Cathay Pacific | Dubai / Riyadh | Jan 31, 2027 |
| British Airways | Jeddah | Permanently terminated |
Economic pressure on international carriers
The financial strain is not isolated to Emirates. The International Air Transport Association (IATA) reported in June that it had cut its net profit forecast for the global aviation industry by nearly half, citing geopolitical risks and energy costs as significant headwinds for the sector. The current situation, as highlighted by Head Topics, has forced airlines to adjust flight paths to avoid restricted airspace, which increases operational costs and complicates the transit of passengers and cargo across international lines.
For passengers, the uncertainty means that flight schedules remain subject to change on short notice based on the security environment. Sheikh Ahmed bin Saeed Al Maktoum emphasized that Emirates maintains a strong cash position and a stable foundation, which he believes will allow the group to manage current volatility and high fuel prices through the latter half of the year.
