finance
Airline Reports Record Profit of $5.4 Billion Despite Regional Conflict
The company announced a full-year net profit of $5.4 billion for the 12 months ending March, up from $5.2 billion a year earlier. It has restored 96 per cent of its global network following airspace closures and rising fuel costs caused by the conflict that began on 28 February. The parent group reported revenue of $41 billion and plans to pay $1 billion in dividends.
May 7, 7:13 AM·1m read1 source
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The company announced a record full-year net profit of $5.4 billion for the 12 months ending in March. That figure rose from $5.2 billion a year earlier even as the US-Israeli war with Iran that began on 28 February triggered widespread airspace closures and higher jet fuel prices.
Higher passenger yields offset a decline in passenger numbers to 53.2 million. The company said it has restored 96 per cent of its global network since the disruptions began and carried 4.7 million passengers during the period of recovery. The parent group posted record revenue of $41 billion, an increase of 3 per cent from the previous year.
It holds cash reserves of $15 billion at the end of March and plans to pay $1 billion in dividends to its owner, the Dubai sovereign wealth fund ICD.
The company stated it is hedged on fuel costs until 2028-29 and has secured supply for current operations as well as a return to pre-disruption capacity levels. Aircraft deliveries, a retrofit programme, and planned investments in new facilities and equipment will continue.
A statement from the company expressed hope for a swift resolution to regional hostilities and a return to market stability. It added that the group was not waiting idly and would keep investing through the uncertainty.
East airspace closures led to thousands of flight cancellations across the sector. The resulting spike in jet fuel prices created the airline industry's biggest crisis since the Covid-19 pandemic, according to the report. Major Gulf carriers, including the company, are gradually restoring capacity but remain below pre-war levels.
