For air cargo, the recession in the Asian and European markets and the slowdown of the US and Japan economies had severe effects on freight loads from January to October 2001, with an improvement in the last quarter of the year. Paradoxically, the upsurge in passenger traffic reduced available freight space in our passenger aircraft and coupled with major price-cutting exercises by some of our competitors, contributed to a tough year. Yield erosion (down 7.5%) continues to be a major concern but a 1.5% improvement is forecast for the financial year 2002-03.
Compared to airlines with a similar fleet mix, SkyCargo made a positive contribution of 17.4% to the airline’s operating revenue, with 11% reckoned as average for a mainly passenger airline.

All in all it was not all gloom and doom, for SkyCargo was able to report a 8.7% improvement in revenue compared with last year and 19.5% increase in tonnage carried.

Global economic indicators are positive for the next financial year and SkyCargo is forecasting a significant growth of 26% in revenue and 22% in volume.

During the year, Emirates continued to lead the air cargo industry in e-business with major internet developments for the Skychain systems such as SKYCHAIN Online and SKYCLAIMS.

Looking to the future, we will continue to operate the leased 747F-400 Freighter on the Dubai-Hong Kong route and Dubai-Amsterdam while the number of online destinations will be increased to 62 with new services to Casablanca, Khartoum, Perth, Mauritius and Osaka. There will be major opportunities to expand markets and volumes particularly as SkyCargo also plans to serve Shanghai during the year.

New infrastructure planned at the Dubai International Airport in the coming year includes start-up work commissioned by the Dubai Civil Aviation and Dubai Cargo Village on the 1,000,000-tonne Cargo Mega Terminal (to be completed by 2006) and on the Dubai Floriculture Distribution Centre which will be opened in 2004.

Finally, Emirates SkyCargo continues to win awards among its peers being voted “Best Airline to the Middle East” by readers of Air Cargo News for the 14th successive year and “Best Airline to the Indian Subcontinent” (six years running), while for the seventh year in a row Cargo News Asia made us “Best Air Cargo Carrier to the Middle East”.