Even as it keeps asking for more seats, Emirates has gone premium in India

November 22, 2025 at 11:47 AM•2 min read•Mint

Why Emirates is Shifting to Premium in India Despite Demanding More Seats

Key Points

1Emirates reported a record half-year profit of AED 11.4 billion (US$ 3.1 billion), up 17% year-over-year.
2The airline strategically shifted to premium services in India, increasing First, Business, and introducing Premium Economy seats.
3India-Dubai bilateral flying rights remain capped at 66,000 weekly seats per side since 2014, limiting Emirates' capacity growth.
4Premiumization aims to boost average yields and competitiveness against Indian carriers amidst ongoing capacity constraints.

Emirates, the Dubai-headquartered airline, has strategically pivoted towards premium services in the Indian market, a move designed to maximize revenue amidst persistent constraints on bilateral flying rights. This shift comes as the airline reported a record half-year profit before tax of AED 11.4 billion (US$ 3.1 billion), an impressive 17% increase year-over-year. Despite this financial strength, Emirates continues to lobby the Indian Government for an expansion of the India-Dubai bilateral agreement, which has remained unchanged since February 2014, capping weekly seats at 66,000 per side and preventing carriers like Akasa Air from launching new Dubai routes.

The airline's premiumization strategy in India involves a significant reconfiguration of its cabin offerings. Emirates has increased its weekly First Class seats out of India by 19% since April 2015 and introduced 1,422 Premium Economy seats, a new class of service. This expansion in premium cabins has come at the expense of Economy Class seats, which have seen a nearly 5% reduction in the Indian market. This calculated move aims to elevate average yields on its Indian routes, compensating for the inability to increase flight frequencies due to the fully utilized bilateral quota.

Data from Cirium indicates Emirates' share of international seats from India has decreased from 10.6% in April 2015 to 6.3% currently, while its capacity by Available Seat Miles (ASM) dropped from 7.9% to 4.5%. This decline is attributed to the fixed seat quota, allowing other airlines to expand services while Emirates remained constrained. By focusing on premium offerings, Emirates seeks to enhance profitability per seat, build customer loyalty, and maintain a competitive edge against Indian carriers like Air India, which are also expanding their international networks. This strategy allows Emirates to push up fares without requiring incremental operational costs, ensuring sustained growth within existing bilateral limitations.