To add details and background

DUBAI, May 7 (Reuters) - Emirates Airline said on Thursday it had achieved record net profits for the full financial year despite the fallout from the Iran war, attributing this to strong demand for travel during most of the period.

The Dubai-based airline said in a statement that its after-tax profits rose to $5.4 billion in the 12 months ending at the end of March, compared with $5.2 billion in the same period of the previous year, as a higher revenue passenger kilometer offset a slight decrease in the number of passengers on Emirates flights, which reached 53.2 million passengers.

The US-Israeli war on Iran, which broke out on February 28, caused severe disruptions that saw airspace temporarily closed in Middle Eastern countries and costs increased due to rising jet fuel prices, leading to the biggest crisis in the air travel sector since the COVID-19 pandemic.

Major Gulf airlines, including Emirates, are gradually restoring capacity but are still operating below pre-war levels, while new attacks on the UAE this week have cast doubt on the fragile ceasefire that has been in place since last month.

The airline said its parent company, Emirates Group, posted record revenues of $41 billion, a three percent increase compared to the previous fiscal year.

The group also announced the distribution of 3.5 billion dirhams ($1 billion), the share of the Investment Corporation of Dubai, the owner of the Emirates Group.

(US Dollar = 3.6723 UAE Dirhams)