Air, Business, Freight News

IAG Cargo Financials Hold Steady

[ November 5, 2015   //   Gary G Burrows ]

IAG Cargo has released its Third Quarter financial results (July 1 to September 30, 2015), and they show commercial revenue of €238 million versus €236 million for the same period last year.
Market conditions remained challenging in the third quarter, resulting in pressure on yields. As a result, yields decreased 4.5% at constant exchange rates, with volumes also finishing 4.7% down on the prior year.
“We have made the point in the past that the air cargo market has established a ‘new normal’, with excess capacity and reduced demand leading to significant price and yield pressures,” comments Steve Gunning, CEO, IAG Cargo. “In the First Quarter, the West Coast port strike in the US gave the air cargo market some respite from this new normal, but the past two quarters have seen a return to more challenging conditions. “
Consequently, Gunning sees IAG Cargo’s strategy and operational model of focusing on cost control, premium products and smart partnerships as more relevant than ever.
“We have made good progress over the quarter against all these strategic goals, and our decision to remove our wet-lease freighter capacity from our fleet and focus on a partnership model has proved justified,” he says. “We have also seen our premium product strategy succeed, with particularly strong growth for our important Constant Climate product. Premium products as a whole now represent more of our business than ever, with record revenue and tonnage figures.”

Tags: IAG Cargo