Emirates Group H1 profit drops 8% on corporate tax

EMIRATES Group, operator of the world’s largest long-haul carrier, reported an 8 per cent decline in first-half profit after the United Arab Emirates introduced a corporate tax.

Profit after tax fell to 9.3 billion dirhams (S$3.36 billion), from 10.1 billion dirhams year-on-year, the Dubai-based company said in a statement on Thursday (Nov 7). Revenue rose 5 per cent to 70.8 billion dirhams.

“We expect customer demand to remain strong for the rest of 2024-25, and we look forward to increasing our capacity,” chairman and chief executive officer Sheikh Ahmed Saeed Al Maktoum said. 

The state-owned carrier has enjoyed huge passenger flows through its hub in Dubai, helping boost profit even as the airline industry grapples with geopolitical tensions. In order to accommodate its growth plans, Dubai’s government is proceeding with a US$35 billion expansion of its second hub, Al Maktoum International Airport, which authorities say will eventually become home to Emirates’ operations. 

The Gulf carrier has a large fleet of aircraft on order, mostly for the still-uncertified Boeing 777X model. The company has said the long delays in aircraft deliveries from the US planemaker as well as Airbus are disrupting its growth plans and costing it business. BLOOMBERG