Dnata expects ‘healthy’ profit as global business cushions effects of Iran war

Dnata, the airport and travel services company owned by the Emirates Group, anticipates a "healthy" profit outlook for the current financial year despite disruptions caused by the Iran war. CEO Nabil Sultan Al Murr attributes this positive outlook to the company's diverse business model and global presence across 37 countries and 160 cities.

Dnata's profit after tax in the financial year ending March 31 was Dh1.3 billion ($367 million), a 4% decrease mainly due to a higher UAE tax rate. However, revenue grew 12% to Dh23.6 billion, driven by increased flights and travel in major markets like Australia, Europe, the UAE, the UK, and the US. The company recorded a 30-35% drop in inbound leisure travel bookings in April, but corporate travel bookings showed signs of recovery in August and September.

Bookings are expected to rebound in Q4 2026, particularly in November, with hotel occupancy rates reaching 70-80%, according to Al Murr. Corporate travel is anticipated to recover faster than holiday travel, as the UAE hosts numerous major events and initiatives to boost safety and attractiveness. Dnata is expanding its services to 28 airports in the US and 29 in Brazil, and has a joint venture with Azerbaijan’s Silk Way Group to establish ground handling and cargo operations at Alat International Airport in Baku, set to open in April 2027.

The company sees growth opportunities in emerging markets, including Africa, Eastern Europe, the Middle East, and India, where it has strong government relationships and existing operations in Erbil, Iraq. Despite the war's impact on air travel, Dnata has not reduced its workforce and is planning to hire more employees to support its global growth.