dnata reports rising passenger bookings and strong cargo growth amid Hormuz disruptions.
Dubai: dnata expects Dubai’s travel market to make a “complete turnaround” by the first quarter of 2027, with the Emirates Group-owned aviation services company already seeing signs of recovery in passenger bookings and spending following disruptions caused by the regional conflict.
Nabil Sultan, who became dnata’s CEO three months ago after spending a decade at the helm of Emirates SkyCargo, expects Dubai’s travel sector to gain significant momentum in early 2027.
Speaking to on the sidelines of the Arabian Travel Market, Sultan said the winter travel season is expected to perform strongly, followed by a substantial increase in both leisure and business travel demand during the first quarter of next year. He expects this period to mark a “complete turnaround” for the market.
The regional conflict has had a mixed impact across dnata’s businesses. Inbound travel to the UAE faced pressure, particularly from European and Asian markets, while demand from the Indian subcontinent, the Middle East and Africa recovered relatively quickly.
Despite these challenges, dnata is seeing positive signs for the fourth quarter. Sultan said booking demand is currently around 5 per cent higher than a year ago, while spending per passenger has increased by nearly 10 per cent.
dnata is a global provider of air and travel services, with operations spanning airport ground handling, cargo, catering and travel solutions.
The company has a presence in more than 160 cities across 37 countries, providing services to airlines, airports, passengers and businesses throughout the wider aviation sector.
Cargo surges
While passenger travel faced disruption from the regional conflict, dnata’s cargo business moved in the opposite direction, recording strong growth.
Sultan described the performance as “phenomenal,” highlighting “mega growth” in cargo volumes and handling activity across Dubai and the wider UAE.
Sultan attributed part of the surge in cargo demand to disruptions around the Strait of Hormuz, which have increased reliance on air freight and pushed volumes higher.
He expects the strong momentum in dnata’s cargo business to continue throughout the year as demand for air freight remains elevated.
The growth comes alongside dnata’s continued investment in its global cargo infrastructure. The company recently invested nearly Dh800 million in a new cargo facility in the Netherlands, which is now operational and, according to Sultan, is “doing exceptionally well.”
dnata has also strengthened its cargo operations in Dubai with the launch of a Cargo Integrated Command Centre, providing a centralised overview of cargo activities across Dubai International (DXB) and Al Maktoum International (DWC).
Inbound recovery
The regional conflict has had an uneven impact on dnata’s travel operations. Sultan said inbound travel to the UAE was initially affected, with demand from European and Asian markets facing the greatest pressure.
However, other regions recovered much more quickly. Demand from the Indian subcontinent, the Middle East and Africa saw an almost immediate rebound, with Sultan noting a swift recovery in both demand and profitability.
One of the most resilient segments has been visiting friends and relatives (VFR) travel, with demand remaining strong despite the wider disruption.
Sultan said travellers with family in Dubai tend to feel more comfortable making the journey and spending time in the emirate. As a result, the VFR segment has not only remained resilient but has continued to grow.
dnata has also recorded robust outbound demand from the UAE. Sultan described both inbound and outbound traffic during the past summer as “phenomenal,” highlighting the continued strength of travel demand in both directions.
Airlines return
Dubai’s passenger market recovery will also be supported by international airlines restoring capacity to the emirate.
Sultan said most Indian carriers maintained normal operations, while some European and Asian airlines scaled back services during April and May. Many of those carriers, however, have already applied for winter slots for October and November and reopened flights for bookings.
He expects most of the affected airlines to resume operations by November or December, bringing additional seat capacity into Dubai as the busy winter travel season begins.
Staff retained
dnata’s airport operations were also affected by lower flight volumes during the disruption, but the company opted to retain its workforce despite the slowdown in aircraft movements.
While continuing to support flight and cargo operations, dnata used the quieter period to focus on employee training and preparation. Sultan said the strategy was to keep staff in place and ensure they were ready to handle the next increase in demand.
He described retaining and preparing the workforce as the right approach for the company at this stage of the recovery.
dnata’s airport operations division employs around 41,000 people and has a presence at 86 airports across 16 countries, according to the company’s FY2025-26 fact sheet.
Catering grows
dnata’s catering business has continued to expand internationally despite the recent disruption. Sultan said the company continues to attract new airline customers, supported by what he described as the high quality of its catering products and services.
He also highlighted growing demand for dnata’s culinary and food offerings as another driver of the business. According to the company’s FY2025-26 fact sheet, dnata’s broader Catering and Retail division operates at more than 60 locations across 12 countries and produces 115.3 million meals annually.
dnata is also expanding its catering infrastructure, with a new inflight catering centre planned at Western Sydney International Airport and additional capacity being developed at its existing Melbourne facility.
The company has also expanded into Indonesia through a partnership with a local service provider at Denpasar International Airport, further extending its catering presence in the region.
New markets
Looking beyond the current recovery, Sultan sees further growth opportunities for dnata in emerging markets across the Middle East, Africa and Central Asia.
Sultan said dnata plans to place greater emphasis on emerging markets as it looks for new growth opportunities.
He identified Iraq, Libya and parts of the Indian subcontinent among the markets with potential, while noting that greater stability would be an important factor in determining future investments. As business activity and stability improve in markets surrounding the UAE, dnata could begin evaluating opportunities for expansion more seriously.
The company is already exploring opportunities in Azerbaijan, where it is working on a potential operation that Sultan said could begin in 2028.
Investment pipeline
Sultan said dnata remains open to acquisitions and strategic investments as it looks to strengthen and complement its global operations. The company continues to assess opportunities across different markets and could pursue further deals when suitable prospects emerge.
Its recently opened cargo facility in the Netherlands, backed by an investment of nearly Dh800 million, is one of the latest examples of this strategy.
dnata’s diversified business model, spanning airport services, catering, cargo and travel, has also helped the company manage the varying effects of the regional disruption. This broad operational base allows the group to navigate short-term challenges while continuing to invest in future growth opportunities.
For now, however, the immediate priority is the recovery in passenger travel and the expected return of stronger demand.
