By Federico Maccioni and Ahmed Elimam
DUBAI, May 7 (Reuters) – Emirates airline has the financial muscle to withstand higher jet fuel prices and disruption from the Iran war, the Gulf carrier said on Thursday, citing strong cash reserves as it posted a record full-year net profit.
Net profit rose to $5.4 billion in the 12 months to the end of March, from $5.2 billion a year earlier. Higher passenger yields – a measure of ticket prices adjusted for distance flown – offset a slight fall in passenger numbers to 53.2 million.
“We hope for a clear resolution to the hostilities soon, and a return to market stability. But in the meantime, we are not sitting on our hands,” Group Chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum said in a statement.
“The Emirates Group enters 2026-27 with very strong cash reserves, which enable us to progress with our plans to strengthen our business without knee-jerk cost control measures,” he said.
The group, parent company to the eponymous airline and ground-handling firm dnata, said cash reserves stood at $15 billion at the end of March.
The U.S.-Israeli war with Iran, which began on February 28, has severely disrupted air travel. Temporary airspace closures in the Middle East forced thousands of cancellations, while rising jet fuel prices pushed up costs, triggering the industry’s biggest crisis since the COVID-19 pandemic.
Sheikh Ahmed said the airline is well hedged on fuel until 2028-29 and has secured supply for current operations and a return to pre-disruption capacity. Aircraft deliveries and a retrofit programme “will continue apace, as well as our planned investments in new facilities and equipment,” he said.
Major Gulf carriers, including Emirates, are gradually restoring capacity but remain below pre-war levels. Renewed attacks on the United Arab Emirates this week have cast uncertainty over a fragile ceasefire that began last month.
Emirates says it has restored 96% of its global network since disruptions began, carrying 4.7 million passengers over the period.
The parent group posted record revenue of $41 billion, up 3% year on year, and plans to pay $1 billion in dividends to its owner, Dubai sovereign wealth fund ICD.
($1 = 3.6723 UAE dirhams)
(Reporting by Ahmed Elimam and Federico Maccioni. Editing by Peter Graff and Mark Potter)
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