Emirates expects to restore prewar seat capacity by year-end as profit holds

Emirates airline anticipates restoring its full prewar seat capacity by the end of the year as travel demand in Dubai rebounds following months of disruption due to the Iran war, according to Adel Al Redha, the airline's deputy president and chief operations officer. Currently, the airline is operating at about 95% of its February capacity and has resumed service to almost all its destinations, with only a few exceptions.

Despite the ongoing conflict, Emirates expects to report a profit for the current financial year, although the profit may not be at the previous level. The airline's financial performance has been impacted by changes in passenger levels, higher fuel costs, and longer flight paths due to airspace restrictions. Fuel typically accounts for 33% to 35% of Emirates' operating costs.

While rising jet fuel prices will likely lead to higher airfares, the airline has not made any predictions. Demand for travel to and through Dubai has increased, with strong bookings in July and August, and further expected in September. The airline has faced challenges in maintaining its Airbus A380 fleet, with the aircraft slated for phase-out by 2040 due to high maintenance costs and the introduction of the Boeing 777X.

Emirates currently operates 116 A380s, with about 90 in service and the rest undergoing maintenance or upgrades. The airline has received 27 Airbus A350 aircraft and has placed orders for 73 more.