Emirates reported a 66% drop in first-half net profit to AED 3.3 billion ($899 million) for the period ending September, with fuel hedging gains of AED 7.1 billion ($1.93 billion) masking what would have been a loss at open-market prices.
The Dubai-based airline's revenue declined 13% to AED 56.9 billion ($15.5 billion, driven by regional airspace closures from the U.S.-Iran conflict and soaring jet fuel costs. Despite strong cargo performance and sustained travel demand across its routes, the carrier struggled through what Chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum called "a demanding six months" marked by "unprecedented regional challenges and high fuel prices."
Fuel hedges kept Emirates profitable when market conditions would have pushed it into the red. The airline's reliance on these contracts highlights the exposure facing carriers once that protective coverage expires.