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Dubai’s Emirates Airlines say trade tensions have not dented global demand for air travel as carriers reported pre-tax profits before record.
Emirates Chairman and CEO Sheikh Ahmed bin Said Al Maktum said that it “remained strong across the network and across the customer segment” and that revenues have increased as more passengers buy the airline’s most expensive seats.
On Thursday, the airline reported record pre-tax profit of DH21.2 billion ($5.8 billion) for the 12 months to end March, up 20% compared to the previous year.
Emirates said pre-tax profit for the fiscal year is the highest in the sector. This reflects Dubai’s growth into one of the world’s largest aviation markets.
IAG, the owner of British Airways’ London listing, reported pre-tax profit of 3.6 billion euros in 2024, and the US Delta has made $4.7 billion. Emirates’ local rival Qatar Airways reported pre-tax profit of $1.7 billion.
The carrier’s confident outlook is in contrast to several other airlines. Other airlines have reported a decline in travel to the US amid concerns about the impact of US President Donald Trump’s tariff and immigration policies, as well as reports of passengers being detained at the US border.
In a statement in the Financial Times, Sheikh Ahmed down the impact, saying that the US market is “doing well” as well, and that the airlines have not seen a decline in travel bookings to the US.
Sheikh Ahmed, a member of Dubai’s royal family, added that the airline “is used for volatility and has the ability to pivot and redirect capabilities as needed.”
Along with Qatar Airways and other government-owned Middle Eastern Airlines, including Etihad in Abu Dhabi, Emirates has revolutionized intercontinental flights over the past 30 years, transforming the Gulf Coast into a major stopover destination.
Etihad and Saudi Arabia’s budget carrier fly are scheduled to be listed this year, and will end the two-year drought of aviation IPOs in the region.
European airlines have warned that they are struggling to compete with Middle Eastern airlines for higher costs, from some of the EU’s strict regulations aimed at reducing carbon emissions from flights.
The Dubai government is expanding its status as a global aviation and tourism hub, expanding its brand as a luxury holiday destination, and focusing on attracting travelers to artificial waterfronts and huge malls, everything from aquariums to ski slopes. According to official statistics, this year alone, around 5.3 million people have stayed in Dubai during the first three months of this year alone.
Unlike many airports, Dubai Airport is open 24 hours a day, making it the busiest international airport in the world. The second existing international airport is undergoing massive expansion to make it what Dubai Airport will be the world’s largest aviation hub.
Emirates is owned by the Investment Corporation of Dubai, the investment arm of the Dubai government. The airline group said it had not received financial support from its owners and is expected to pay a DH6bn dividend this year.
Emirates airline revenue rose 6% to DH12.79 billion in the year, boosted by the strong demand for airline businesses and first-class seats.
The cost of flying on these premium seats has skyrocketed since the coronavirus pandemic. Tickets for Emirates round trips, first class tickets between Dubai and London’s Heathrow’s first class are on sale for around $14,800 on their June trip. British Airways equivalent tickets are available for sale for around $9,300.
“Premium cabins are a major contributor to Emirates’ profitability and there is strong demand across the market and travel segment,” Sheikh Ahmed said.
The broader Emirates Group, which includes the ground handling business DNATA, reported that pre-tax profits increased to a record DH2.27 billion.
