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. Presently, the airline operates at approximately 95 percent of its February capacity, having returned to nearly all its destinations, according to Adel Al Redha, Emirates' deputy president and chief operations officer. Al Redha stated, "At about 95 per cent, you're almost there."

While Emirates intends to achieve prewar capacity by year-end, certain destinations have not yet seen their frequencies increased. The airline has not disclosed the financial impact of the conflict-induced disruption, but Al Redha expressed confidence in the company's profitability for the current fiscal year. "I expect the airline to be profitable," he affirmed. "Not to the level as we were expecting it, but we've been doing fine."

Emirates has adjusted to the situation by keeping its aircraft and crew prepared for deployment. Demand for travel to and through Dubai has risen, with strong bookings in July and August and further increases expected in September. Al Redha noted, "We're seeing September demand is coming, we're seeing so much demand is coming."

However, the disruption has affected Emirates' financial performance, primarily due to changes in passenger levels, higher fuel costs, and longer flight paths caused by airspace restrictions. Fuel, accounting for 33 to 35 percent of operating expenses, has been the most significant expense, with escalating prices and varying costs adding to the financial burden. Airfares may also rise as airlines adjust to higher fuel costs and operational disruptions.