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

Dnata, a division of Emirates Group, anticipates robust profits for the current financial year despite the disruption caused by the Iran war. The company's global operations, spanning 37 countries and 160 cities, have helped cushion the impact. CEO Nabil Sultan Al Murr highlighted the company's diversified business model as a key advantage, stating it allows Dnata to switch and activate services in other markets when necessary.

The company's profit after tax for the year ending March 31 reached Dh1.3 billion, a 4% decrease primarily due to a higher UAE tax rate in 2025-2026. Revenue, however, surged 12% to Dh23.6 billion, driven by increased flights and travel in key markets like Australia, Europe, the UAE, the UK, and the US. Despite a 30-35% drop in inbound leisure travel bookings in April, corporate travel bookings have shown signs of recovery since August.

Q4 bookings are expected to rebound, particularly in November, with hotel occupancy rates reaching 70-80%. Corporate travel is anticipated to recover faster than leisure travel. Dnata is also expanding its services to new airports in the US and 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.

The company sees growth opportunities in emerging markets across Africa, Eastern Europe, the Middle East, and India, where it already has established relationships with governments. Despite the war, Dnata has not reduced its workforce and plans to hire more employees as it expands its global operations.