Emirates SkyCargo has placed an order for an additional five Boeing 777 freighters as it expands its fleet in line with the growth in the cargo sector.
The additions will bring its freighter fleet to 17 and are expected to increase its main deck cargo capacity 30 per cent by 2026, the cargo unit of Dubai's Emirates airline said on Tuesday.
The new purchase takes Emirates’ order book to 245 Boeing widebody airplanes, 10 of which are 777 freighters. It comes as a boost for the US plane maker, which has been grappling with safety and legal challenges, along with delayed deliveries.
"This investment in additional Boeing 777 capacity enables us to cater to customer demand and marks a step forward on our long-term strategic growth plan,” Sheikh Ahmed bin Saeed, chairman and chief executive of Emirates airline and group, said.
“The next phase of our strategy will include a full assessment for our future freighter fleet reviewing all aircraft options to ensure we are best equipped to respond to the evolving demands of the market.”
Emirates SkyCargo serves 140 destinations across six continents, with a fleet including 777 freighters, 777 converted freighters and 747 freighters.
Its revenue for fiscal year 2023 reached Dh13.6 billion ($3.7 billion), contributing 11 per cent to Emirates' overall revenue, the company reported in May.
Total cargo demand, measured in cargo tonne-kilometres, rose by 14.7 per cent annually in May, with the increase at 15.5 per cent for international operations, the International Air Transport Association said in a report this month.
It marked the sixth consecutive month of double-digit year-on-year growth.
"The sector benefitted from trade growth, booming e-commerce and capacity constraints on maritime shipping," Iata's director general Willie Walsh said.
"The outlook remains largely positive with purchasing managers showing expectations for future growth. Some dampening, however, could come as the US imposes stricter conditions on e-commerce deliveries from China," he added.
The global air cargo industry is projected to reach $210.3 billion by 2027, a nearly 11 per cent growth from an estimated $189.75 billion in 2024, data from Statista shows.
Meanwhile, the order for Boeing comes as it is battling to overcome setbacks caused by safety and legal problems.
This month, the company pleaded guilty to a criminal fraud conspiracy charge, settling an investigation into two fatal 737 Max crashes in Indonesia and Ethiopia over five months in 2018 and 2019 that resulted in the deaths of 346 people.
It is also being investigated after an Alaska Airlines 737 Max flight had to make an emergency landing, when an outer part of the plane fell off shortly after take-off, in January.
“We deeply value Emirates’ trust in the Boeing widebody family and are committed to supporting their long-term strategic growth plan," said Stephanie Pope, president and chief executive of Boeing Commercial Aeroplanes.
Boeing said it currently provides more than 90 per cent of the global "dedicated freighter capacity", including new production and converted airplanes.
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Result: UAE won by 21 runs
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He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
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THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
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Call the hotline on 0502955999 or send "thenational" to the following numbers:
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Key facilities
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