Emirates SkyCargo reaffirmed its position in global air logistics and trade, carrying 2.2 million tonnes of goods around the world in 2023-24, up 18% from the previous year, as increased passenger operations expanded available cargo capacity, and the leasing of three 747 freighters during the year unlocked immediate capacity to serve demand on busy routes. This reflects the high customer demand for its specialist logistics solutions, the reach and connectivity of Emirates’ global network, Dubai’s world-class sea-air hub capabilities, and the fruits of Emirates SkyCargo’s ongoing investments in digital technology, infrastructure, and products.
Despite continued challenges in global logistics, the cargo division reported a solid revenue of AED 13.6 billion (US$ 3.7 billion), contributing 11% to the airline’s total revenue. Cargo yield per Freight Tonne Kilometre (FTKM) declined by 32%, returning to pre-pandemic marketplace levels.
Emirates SkyCargo reported an 18% rise in air cargo volumes for 2023-24 but reduced cargo revenue due to higher rates.
The cargo division of Emirates carried a total of 2.2m tonnes of goods around the world in 2023-24, said Emirates Group in its annual report for the financial year April 1 2023 to March 21, 2024.
“Tonnages for both scheduled and freighter operations grew significantly (20% and 11% respectively). Demand was particularly strong for perishable goods from India, Pakistan and South Africa,
primarily destined for Europe and the GCC countries,” said Emirates.
However, the cargo division recorded revenue of $3.7bn during the period, a decrease of 21% compared to the 2022-2023 financial year. Cargo revenue contributed 11% to the airline’s total revenue.
Cargo yield per Freight Tonne Kilometre (FTKM) declined by 32%, returning to pre-pandemic marketplace levels. The impact of lower yields was “partly offset” by growth in volumes, said Emirates.
“With the global supply chain returning to normality this year, there was a significant increase in cargo capacity worldwide which resulted in a downward pressure on prices,” noted the airline.
Although increased market capacity impacted Emirates’ cargo revenue, the airline’s own increased capacity helped it serve air cargo demand.
Emirates noted that “increased passenger operations expanded available cargo capacity, and the leasing of three 747 freighters during the year unlocked immediate capacity to serve demand on busy routes”.
At the end of 2023-24, Emirates’ SkyCargo’s total freighter fleet stood at 11 Boeing 777Fs.
During the period, Emirates SkyCargo secured three Boeing 747Fs on wet lease to help meet air cargo demand while it awaits the delivery of four 777-200Fs in 2024 and one in 2025
The airline “deployed additional capacity into key markets such as Hong Kong, China, and Europe on the back of increasing customer demand”.
Emirates also launched a new freighter route to Zumpango, Mexico, taking the total dedicated freighter destinations to 10.
During the financial year, Emirates SkyCargo further launched Emirates Vital and Emirates Medical Devices, two purpose-built cargo solutions to serve the requirements of the life sciences and healthcare sector.
The business also launched an e-commerce platform, Emirates Delivers in Kuwait to connect shoppers there with e-commerce brands in the UK, the US, and the UAE.
Emirates Delivers achieved a 16% revenue increase and a 21% growth in volume compared to 2022-2023. “Emirates Delivers is poised to scale significantly in the coming years, focussing on markets underserved by business-to-consumer delivery solutions,” commented the airline.
Overall, Emirates Group reported a record profit of $5.1bn, up 71% from last year. The Group’s revenue was $37.4bn, an increase of 15% over last year’s results.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive at Emirates Airline and Group, said: “The Emirates Group has once again raised the bar to deliver a new record performance. Throughout the year, we saw high demand for air transport and travel-related services around the world, and because we were able to move quickly to deliver what customers wanted, we achieved tremendous results.
“We are reaping the benefit of years of non-stop investments in our products and services, in building strong partnerships, and in the capabilities of our talented people.”
At the end of 2023-24, Emirates’ SkyCargo’s total freighter fleet stood at 11 Boeing 777Fs. The cargo division expects delivery of its 5 additional Boeing 777Fs on order from mid-2024.
