Despite the Trump administration’s ongoing war with Iran and the resulting conflict in the Middle East, Disney has, once again, reaffirmed plans to build a new theme park in Abu Dhabi. Disney CFO Hugh Johnston addressed an analyst question this morning, saying that Disney is “fully committed” to seeing the Abu Dhabi project through. Here’s the latest.
Disney CFO Addresses Abu Dhabi Plans Amid Ongoing Regional Conflict
IN THIS ARTICLE:
- Disney CFO Hugh Johnston addressed fuel costs and Middle East conflict on the fiscal Q3 2026 earnings call.
- Johnston reaffirmed Disney’s full commitment to the Disneyland Abu Dhabi project.
- Johnston also covered Asia park softness, fuel hedging, and tariff impacts.
Disney Addresses Middle East Conflict & Fuel Concerns
When asked about concerns over the variability of fuel costs and the volatility of conflict in the Middle East on Disney, Johnston started by pointing to demand. He said demand remains strong across domestic parks and cruises. Consumer products also had a strong quarter. Johnston credited that to the strength of Disney’s intellectual property.
Forward bookings at Walt Disney World are up, Johnston said. Cruise line bookings look healthy too. Still, Johnston said Disney isn’t immune to macro factors. Fuel touches the entire economy, he noted.
As an example, Johnston pointed to a weaker consumer in Asia. Shanghai Disney Resort and Hong Kong Disneyland both felt that softness in the third quarter. The trend has continued into the fourth quarter. Disney’s global portfolio has helped offset it, according to Johnston.
Disney Reaffirms Commitment to Disneyland Abu Dhabi
Johnston then turned to the Disneyland Abu Dhabi project. He said Disney is designing the park with a long-term view. These projects take multiple years to build, Johnston said. Once built, they last for decades, he added.
Johnston said Disney continues to believe in the project’s strategic rationale. “We are fully committed to seeing that project through,” he said. His comments mark the second straight quarter that a Disney executive has addressed Abu Dhabi in response to regional instability.
Disney CEO Josh D’Amaro said in May that the “strategic logic” of the Abu Dhabi plans was unchanged. That comment came weeks after a war between Iran and Israel drew strikes against the UAE. Disney and Miral had already addressed that conflict with their own reaffirmation of the project. Iran targeted multiple areas within the UAE during that conflict. Those targets included Zayed International Airport, located just 10 minutes from the planned Disneyland Abu Dhabi site.
Disney first announced Disneyland Abu Dhabi in May 2025. The company described it as a waterfront resort on Yas Island. It would become Disney’s seventh theme park destination worldwide. Miral is developing and funding the park under a licensing arrangement. Disney Imagineers lead creative design and operational oversight.
What remains unknown is a firm opening timeline or construction start date for Disneyland Abu Dhabi. It’s also unclear whether continued instability in the region could eventually alter the project’s scope or schedule.
Beyond the statement from Disney execs, Disney also included Abu Dhabi in the list of upcoming theme park projects for the Experiences division.
Fuel Hedging and Tariff Costs
Johnston also addressed fuel prices specifically. He said Disney is seeing very little impact from oil price swings this year. The company’s hedging program gets credit for that, Johnston said. Fuel efficiency initiatives at the cruise line also helped.
Johnston then turned to tariffs. Disney Experiences saw about $100 million in tariff-related benefits during the quarter. Those benefits hit the segment favorably with no impact on revenue, Johnston said. He expects a smaller benefit, if any, in the fourth quarter. The fuller tariff impact will be immaterial for the year overall, Johnston said. That’s because the associated costs landed in the first half of fiscal 2026.
Story So Far
- May 7, 2025: Disney announced plans to build a theme park resort in Abu Dhabi on Yas Island.
- March 24, 2026: Disney and Miral reinforced their commitment to the project amid the Iran war.
- May 6, 2026: Disney CEO Josh D’Amaro said the strategic logic behind the Abu Dhabi plans remained unchanged.
- August 5, 2026: Disney CFO Hugh Johnston reaffirmed full commitment to the project on the fiscal Q3 2026 earnings call.
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