Emirates airline is contemplating an order for either Boeing (NYSE:BA) 777-8 freighters or Airbus 350Fs as part of its strategy to double its cargo capacity within the next decade, according to Nabil Sultan, Emirates' cargo chief. The decision is projected to be made by 2027 and was announced during an industry conference in Singapore on Monday.
In addition to the potential order, the Dubai-based airline is considering converting some of its over 100 Boeing 777 passenger planes and two wet-leased 747 cargo aircraft into cargo planes. This move would supplement its all-Boeing cargo fleet and align with the company's long-term plans.
The airline's freight division, Emirates SkyCargo, generated $4.9 billion in revenue in the last fiscal year, putting it in close competition with Qatar Airways' airfreight division, which posted revenues of $5.6 billion, and FedEx Corp (NYSE:FDX). These three entities are among the top largest cargo carriers globally.
Emirates SkyCargo aims to replace its Airbus A380s over the next decade with widebody planes and convert 10 Boeing 777-300ER passenger jets for cargo use. This strategy is part of a broader effort to meet increasing demand for air freight services, particularly ahead of the Christmas season.
Despite a dip from peak levels during the COVID-19 pandemic, cargo yields remain 20% above pre-pandemic rates. The International Air Transport Association reported a year-on-year growth in global air cargo demand of 1.5% in August, marking the first growth in this sector in 19 months.
In addition to these plans, Emirates has a backlog order of 200 widebody planes. The combination of these strategic moves underscores the airline's commitment to expanding its footprint in the global air cargo industry.
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