Logistics

More freighters on order at Emirates

October 21, 2024, 3:24 PM

Emirates freighters — Total global demand for air cargo rose by 11.4% year on year in August

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Emirates, Dubai’s flagship airline, has ordered more freighters in a push to expand its cargo operations, reports in local and international media said.

The airline has ordered five Boeing 777 freighters, which are due to be delivered from 2025/2026 and brings the total number of 777 freighters on order to 14.

“Demand for Emirates’ air cargo services has been booming. This reflects Dubai’s growing prominence as a preferred and trusted global logistics hub,” Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and Group, said in a press statement.

Emirates is still waiting for the long-delayed delivery of the first of its order for 205 Boeing 777X jets, a delay that has already cost the airline around $3 billion, executives said last week.

Data from the International Air Transport Association (IATA) showed total global demand for air cargo rose by 11.4 percent year on year in August, the ninth consecutive month of double-digit year-on-year growth.

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Willie Walsh, IATA’s director general, said this month: “We continue to see very good news in air cargo markets. This strong performance is underpinned by slow but steady growth in global trade, booming ecommerce and continuing capacity constraints on maritime shipping.”

Air cargo between the region and Europe experienced the strongest rise, with a 30 percent increase on the same time last year.

Emirates SkyCargo reported in May that it carried 2.2 million tonnes of goods around the world in 2023-24, an increase of 18 percent year on year.

The carrier’s cargo division reported revenue of AED13.6 billion ($ 3.7 billion) last year, accounting for 11 percent of Emirates airline’s total revenue.

The surge in air cargo demand in the region comes as traders look for alternatives to shipping.

Saudi Arabia’s Public Investment Fund is planning to launch a new cargo airline to compete with the logistics dominance of the UAE and Qatar, it was reported in August.

The proposed new cargo operation would support the country’s flag carrier, Saudia, and Riyadh Air, with Boeing 777 and Airbus A350 freighters.