May 11, 2016: Emirates SkyCargo, the cargo division of Emirates airline reported revenue of $3.0 billion, a decline of 9 percent over last year, while tonnage increased by 6 percent to reach 2.5 million tonnes in a challenging airfreight market. This year, freight yield per Freight Tonne Kilometre (FTKM) decreased sharply by 16 percent, and was also impacted by the weakening of major currencies.
In addition to belly-hold capacity to Emirates’ new passenger destinations, Emirates SkyCargo increased freighter operations to Mexico City, and launched new freighter services to Ho Chi Minh City (Vietnam), Ahmedabad (India), Columbus (USA), Algiers (Algeria), and Ciudad Del Este (Paraguay).
Last year, it also inaugurated its purpose-built cargo terminal for freighter operations at Al Maktoum International airport (DWC), and received delivery of a Boeing 777F, rounding off its total freighter fleet to 15 aircraft: 13 Boeing 777Fs, and two Boeing 747-400Fs.
2015-16 has been most profitable for dnata, world’s largest air service provider and is a part of the Emirates Group. dnata crossed $ 287 million profit for the first time and revenue grew to $2.9 billion. dnata’s international business now accounts for more than 64 percent of its revenue.
Building on last year’s record levels of investment, dnata continued to lay the foundations for future growth by investing $159 million into developing its people, facilities, technology and new acquisitions.
The acquisition of new international businesses in the last year included: Aviapartner’s air cargo business at Amsterdam Airport Schiphol; Ground Handling SPA in two airports in Milan; and RM Ground Services in Brazil, extending dnata’s global footprint to the Americas for the first time.
Revenue from dnata’s UAE Airport Operations, including aircraft and cargo handling increased by 13 percent to reach $777 million. The strong revenue rise accounts for the effect of the 80-day runway closure at Dubai International airport (DXB) which dampened revenue growth in the previous year.
In line with revenue growth, the number of aircraft handled by dnata in the UAE increased 12 percent to 211,000, whereas cargo handling dropped by 6 percent to 689,000 tonnes reflecting the cargo industry’s ongoing malaise. Dubai World Central now accounts for 24 percent of dnata’s cargo handling activities in Dubai. dnata has handled over one million tonnes of air freight since its first full year of operation in 2011 at Dubai World Central (DWC).
In just five years dnata has seen a staggering 90 percent increase in freight volume, recording 170,260 tonnes in 2015, up from 89,729 tonnes in 2011. The performance has far exceeded the original growth forecast of 20 percent.
dnata’s International Airport Operations division grew revenue substantially by 32 percent to $ 571 million, on account of increasing business volumes and newly acquired businesses in the Netherlands and Brazil.
The number of aircraft handled increased significantly by 63 percent to 178,000, and air cargo noted a substantial growth of 46 percent to 1.4 million tonnes of handled goods. These results are because of previous years’ investments in new international cargo handling facilities particularly in the UK.