Emirates Airlines Reports 12% Increase in Inflight Catering Costs to Dh5.3 Billion

Kuwait City, Kuwait Aug 29, 2026 ALN: Dubai: Emirates spent Dh5.316 billion on inflight catering and services during the financial year ended March 31, 2026, an increase of Dh570 million from the previous year, according to the airline’s annual financial statements.

The figure was 12 percent higher than the Dh4.746 billion recorded a year earlier and works out to an average of about Dh443 million a month, or Dh14.6 million a day. On a daily basis, Emirates spent roughly Dh1.56 million more than it did in the previous financial year.

The airline’s accounts classify the expense under “inflight catering and services,” a category broader than meals and drinks alone. It accounted for about 4.9 percent of Emirates’ total operating costs of Dh108.129 billion during the year. This classification encompasses not only the food and beverages served on board but also the associated logistics, storage, and preparation costs, which can significantly influence the overall expenditure.

The annual report shows that inflight catering and services was Emirates’ seventh-largest operating cost, behind jet fuel, employee costs, depreciation and amortisation, sales and marketing, handling, and aircraft maintenance. Aircraft maintenance alone cost Dh6.03 billion, slightly above the catering and services bill. This indicates that while inflight catering is a substantial expense, it remains secondary to other critical operational costs that airlines face, particularly in a highly competitive market.

The increase in catering costs was considerably faster than the airline’s overall cost growth. Emirates said total operating costs rose 2 percent during the financial year, while its fuel bill, still its largest single expense, fell to Dh31.2 billion from Dh32.6 billion. The reduction in fuel costs may have provided some financial relief, allowing the airline to allocate more resources towards enhancing passenger services and experiences through improved inflight catering.

The higher catering bill came during a year in which Emirates continued to broaden its global network and invest heavily in the passenger experience. The airline added four destinations: Da Nang, Hangzhou, Siem Reap, and Shenzhen, taking its network to 152 cities in 80 countries by the end of March. This expansion reflects Emirates' strategy to tap into emerging markets and increase its competitiveness in the global aviation landscape.

During the same period, Emirates carried 53.2 million passengers, showcasing its robust demand and operational capacity. The airline continued a multibillion-dollar cabin retrofit programme and introduced new onboard products and services, enhancing the overall customer experience. By March 31, 91 aircraft had completed full cabin refurbishments under the airline’s US$5 billion retrofit programme, which aims to modernize and elevate the travel experience for passengers.

The airline reported record revenue of Dh130.9 billion and profit after tax of Dh19.7 billion for 2025-26, its strongest profit performance to date. This financial success can be attributed to a combination of factors, including strategic route expansions, effective cost management, and a focus on customer satisfaction. The increase in inflight catering costs, while notable, is part of a broader strategy to ensure that passengers receive high-quality services, which can lead to repeat business and brand loyalty.

In the context of the airline industry, rising inflight catering costs can be seen as a reflection of several underlying trends. First, the global supply chain has faced disruptions in recent years, leading to increased prices for food and beverage suppliers. Additionally, airlines are increasingly prioritizing quality and sustainability in their offerings, which can lead to higher costs as they source premium ingredients and implement environmentally friendly practices.

The implications of these rising costs extend beyond just the financial statements of Emirates. As competition in the airline industry remains fierce, other carriers may also experience similar trends in their catering expenditures. This could lead to a broader industry shift where airlines must balance cost management with the need to provide exceptional service to attract and retain customers. Furthermore, the emphasis on enhancing passenger experiences through better inflight services may encourage other airlines to invest in their catering operations, potentially leading to a rise in overall industry standards.

In summary, while Emirates Airlines has reported a significant increase in inflight catering costs, this is part of a larger narrative of growth, investment, and strategic expansion. As the airline navigates the complexities of the aviation market, its focus on passenger experience and operational excellence will likely continue to shape its financial performance and competitive positioning in the years to come.