Revenue

	2001-02		2000-01
	AED million	%	AED million	%
Passenger	5,261	76.0	4,659	75.8
Cargo	1,059	15.3	968	15.8
Courier	69	1.0	71	1.1
Excess baggage	68	1.0	57	0.9
Mail	19	0.3	16	0.3
Transport Revenue	6,476	93.6	5,771	93.9
Sale of consumer goods	340	4.9	251	4.1
Destination and leisure (see below)	78	1.1	91	1.5
Other	31	0.4	30	0.5
Total operating revenue	6,925	100.0	6,143	100.0

Destination and leisure revenue reflects the net income after removal of inter company trading and direct operating costs. Total package sales achieved for 2001-02 were AED 413 million down 16.6% on previous year (2000-01: AED 495 million) on account of September 11.

Revenue

Expenditure

(a) Includes in-house engineering employees.
(b) Excludes interest and financing costs.

Expenditure

Yield, unit cost and breakeven load factor

Overall yield reduced by 5% to 166 fils per tonne-kilometre impacted by weaker currencies against the US Dollar in UK, Australia, Pakistan and South Africa. Passenger yield dropped by 4.6% mainly on account of weaker currencies contributing 3.0 percentage points and a decline in premium class traffic immediately after September 11. Cargo yield fell by 7.5% due to a combination of weaker currencies contributing 3.4 percentage points, recession in key Asian and European markets and the bottoming out of rates consequent to a fall in demand.

Unit cost improved by 6 fils (5.4%) to 108 fils per capacity tonne-kilometre as a result of lower average fuel prices and lower employee and sales and marketing costs per ATKM consequent to stringent cost containment measures introduced in the immediate aftermath of September 11.

Overall the improvement in breakeven load factor to 65.1% from 65.5% last year is a very substantial achievement especially given the huge increase in insurance costs.

Yield and unit cost

Capacity, traffic and load factor

Traffic increased by 18.1% to 3,908 million tonne-kilometre, 2 percentage points lower than the capacity increase (20.1% to 5,718 million tonne-kilometres). Aircraft departures increased by 10.2% to 38,914 while aircraft utilisation remained at one of the highest in the industry at over 12 hours per day.

The increase in traffic came principally from:

• the introduction of a new service to Hyderabad
  
• the full year effect of services launched during the previous financial year to Chennai, Birmingham, Tripoli and Dusseldorf
  
• increased frequencies to Pakistan, South Africa, France and Syria
  
• increased capacity to existing destinations using bigger aircraft, mainly Hong Kong, Bangkok, Sydney, Munich, Nairobi, Dar-es-salaam, Entebbe, Tehran, Sanaa and Kuwait
  
• increased freighter operations (20% higher compared with the previous year).

Passenger seat factor declined marginally by 0.8 percentage points to 74.3%. In the 10 weeks following September 11, passenger demand fell and seat factors averaged 66%, down 8.0 percentage points on the same period last year. However, passenger loads picked up in the last quarter of the financial year with seat factors averaging 80%, despite an increase of 16% in capacity. Passengers uplifted reached 6.8 million in 2001-02, representing an increase of 18.3% over last year.

Cargo carried in 2001-02 improved by 19.5% to 400,569 tonnes (2000-01: 335,194 tonnes), recording strong growth across the entire network.

Overall load factor declined by 1.2 percentage points to 68.3%, which represents a very robust performance by industry standards in a very difficult year.

Overall and breakeven load factor

Employee strength and productivity

In the year under review, the average workforce rose by 1,167 (14.6%) to 9,163. The average number of employees in the airline grew by 1,126 (14.9%) to 8,697 as a result of the significant growth in capacity.

A breakdown of the number of employees by category is shown below:

	2001-02	2000-01
UAE
Cabin crew	2,719	2,299
Flight deck crew	556	498
Engineering	790	756
Other	2,971	2,593
	7,036	6,146
Overseas stations	1,661	1,425
Total Emirates	8,697	7,571
Subsidiary company	466	425
Average employee strength	9,163	7,996

Employee productivity, measured in terms of revenue per employee was AED 793,917 compared with AED 802,573 in 2000-01 which reflects the adverse impact on traffic volumes and yield in the immediate aftermath of September 11.

Value added, which is a measure of wealth created by Emirates during the year, was AED 2,593 million up 9.8% on last year (2000-01: AED 2,361 million). This is equivalent to AED 282,986 per employee compared with AED 295,231 in the previous year.

Capacity per airline employee improved for the twelfth year with a 4.6% increase in ATKM’s to 657,513 (2000-01: 628,850). In addition, load carried per airline employee increased 2.8% to 449,331 RTKM’s (2000-01: 437,148).

Fleet information

Aircraft	In operation	On firm order	On option
B777-200	9	-	4
B777-300	4	-	-
A310-300	2*	-	-
A300-600R	1	-	-
A330-200	22	5	-
A340-500	-	6	10
A380-800	-	22	10
Total	38	33	24

In addition to the above, Emirates has entered into contracts with International Lease Finance Corporation and Singapore Aircraft Leasing Enterprise in respect of the operating lease of eight
B777-300 aircraft to be delivered between April 2002 and September 2003.

* One A310-300 has been retired from the fleet since the end of the financial year.

Emirates operates the youngest fleet in the industry with an average age of 37 months as compared with an industry average of 156 months.

Average fleet age: Emirates and Industry