Emirates Airline Reports Record $5.4B Profit Despite Middle East War Impact
Emirates Airline's Financial Performance and Market Challenges
DUBAI, May 7 (Reuters) - Emirates airline on Thursday posted a record full-year net profit despite the impact of the Iran war, as the carrier cited strong travel demand throughout most of the period.
Record Profit and Passenger Yield
The Gulf carrier said in a statement its profit after tax rose to $5.4 billion in the 12 months to the end of March, up from $5.2 billion in the same period a year earlier, as higher passenger yield offset a slight decline in the number of passengers Emirates carried to 53.2 million.
Impact of Middle East Conflict on Aviation
Operational Disruptions and Rising Costs
The U.S.-Israeli war with Iran, which began on Feb. 28, has led to severe disruptions as airspaces in the Middle East closed temporarily and surging jet fuel prices lifted costs, leading to the air travel industry's biggest crisis since the COVID-19 pandemic.
Capacity Restoration and Ongoing Uncertainty
The major Gulf carriers including Emirates have been gradually restoring capacity, but are still operating below pre-war levels, while renewed attacks on the United Arab Emirates this week cast uncertainty on a fragile ceasefire that entered into effect last month.
Emirates Group Revenue and Dividends
Group Revenue Growth
The Dubai-based airline said its parent Emirates Group posted a record revenue of $41 billion, up 3% from a year earlier. The group will distribute total dividends of $1 billion to its owner, sovereign wealth fund ICD.
Exchange Rate Information
($1 = 3.6723 UAE dirhams)
Reporting Credits
(Reporting by Ahmed Elimam and Federico MaccioniEditing by Louise Heavens and Peter Graff)
