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Dubai’s Emirates airline has said trade tensions have not dented global demand for air travel, as the carrier reported record pre-tax profits.
Sheikh Ahmed bin Saeed Al Maktoum, Emirates’ chair and chief executive, said demand for flying “remains strong across the network and across customer segments”, and that revenues had been boosted by more passengers buying the airline’s most expensive seats.
The airline on Thursday reported record pre-tax profits of Dh21.2bn ($5.8bn) for the 12 months to the end of March, up 20 per cent compared with the previous year.
Emirates said its pre-tax profits for the financial year were the highest in the sector, a reflection of how Dubai has grown into one of the world’s biggest aviation markets.
IAG, the London-listed owner of British Airways reported pre-tax profits of €3.6bn in 2024 and the US’s Delta made $4.7bn. Qatar Airways, Emirates’ local rival, reported pre-tax profits of $1.7bn.
The carrier’s confident outlook contrasts with some other airlines, which have reported declines in travel to the US amid concerns about the impact of American President Donald Trump’s policies on tariffs and immigration as well as reports of passengers being detained at the US border.
In a statement to the Financial Times, Sheikh Ahmed downplayed the impact, saying the US market was also “doing well” and the airline had not seen any drop in bookings for travel to or from the US.
Sheikh Ahmed, who is a member of Dubai’s royal family, added that the airline was “used to volatility and have the ability to pivot and redirect our capacity as required”.
Along with other government-owned Middle Eastern airlines, including Qatar Airways and Abu Dhabi’s Etihad, Emirates has revolutionised intercontinental flying over the past three decades by turning the Gulf into a leading stopover destination.
Etihad and Saudi Arabia’s budget carrier Flynas are both expected to list this year, which would end a two-decade drought for aviation IPOs in the region.
European airlines have warned they are struggling to compete with Middle Eastern carriers because of their higher costs, in part from the EU’s strict rules aimed at cutting carbon emissions from flying.
The Dubai government has focused on expanding the city state’s status as a global aviation and tourism hub, branding itself as a luxurious holiday destination and attracting travellers to its man-made waterfronts and gargantuan malls, home to everything from aquariums to ski slopes. Some 5.3mn people stayed in Dubai in the first three months of this year alone, according to official statistics.
Unlike many airports, Dubai Airport operates 24 hours a day and is the world’s busiest international one. A second existing international airport is undergoing a massive expansion to become what Dubai Airports says will be the world’s largest aviation hub in capacity terms.
Emirates is owned by the Dubai government’s investment arm, the Investment Corporation of Dubai. The airline group has said it receives no financial support from its owner, to which it will pay a dividend of Dh6bn this year.
Airline revenues at Emirates rose 6 per cent to Dh127.9bn for the year to March, boosted by strong demand for the airline’s business and first-class seats.
The cost of flying in these premium seats has rocketed since the coronavirus pandemic. Tickets for a round-trip, first-class ticket on Emirates between Dubai and London Heathrow first class are on sale for about $14,800 for travel in June. An equivalent ticket on British Airways is on sale for approximately $9,300.
“Premium cabins contribute significantly to Emirates’ profitability, with strong demand across markets and travel segments,” Sheikh Ahmed said.
The wider Emirates Group, which includes ground-handling business Dnata, reported an 18 per cent rise in pre-tax profits to a record Dh22.7bn.
