Emirates is a state-owned enterprise and there are a lot of accusations that it's subsidized by the state through below-market borrowing.
Your question is also kind of like asking why HP laptops are lower quality than Apple laptops. Emirates uses its Dubai base to serve primarily lucrative international flights, just like Apple targets the premium end of the market. That doesn't mean that HP is in a market segment without competition, however. Rather, it targets a cost-sensitive portion of the market where people aren't willing to pay extra for quality.
My view is that is the Emiratis want to squander their money on giving at-cost fuel and basically-zero-interest loans to their flag carrier, that's on them.
It's not as though the US air market isn't heavily protected. You'll note that foreign carriers like Emirates can't fly domestic routes. If I fly Qantas to NYC, half the plane gets off in LA and nobody else can get on. Which is part of why "Qantas ticket" is the ancient Yolŋu word for "financial ruin".
> why HP laptops are lower quality than Apple laptops.
So why can I choose to buy either an Apple laptop or an HP one in the US, but don't have the choice to fly on Emirates from Chicago to NYC? I think you missed my point entirely. There is a market of people willing to pay for superior quality airline service, there is just no supply for it, because of regulation.
Your question is also kind of like asking why HP laptops are lower quality than Apple laptops. Emirates uses its Dubai base to serve primarily lucrative international flights, just like Apple targets the premium end of the market. That doesn't mean that HP is in a market segment without competition, however. Rather, it targets a cost-sensitive portion of the market where people aren't willing to pay extra for quality.