Cargo revenue rise in Q2 for IAG Cargo, tonnage flat

posted on 3rd August 2018 by Justin Burns
Cargo revenue rise in Q2 for IAG Cargo, tonnage flat

IAG Cargo’s cargo revenue was up 3.7 per cent to €281 million in the second quarter of this year compared to the same quarter last year (€271 million) but tonnage was flat in the quarter at 173,000 tonnes.

IAG said that revenue actually increased by 9.6 per cent on 2017 at constant exchange and overall yield for the quarter from 1 April to 30 June was up 10 per cent at constant exchange while CTK volumes were down 0.4 per cent and capacity grew by 3.3 per cent.

For the first half of the year, IAG said the cargo performance was strong with an increase in cargo yield (cargo revenue/cargo tonne kilometres) and an increase in tonnes carried. The Asia Pacific region performed well and mix improved from Constant Climate Critical products.

In the first half of 2018 to 30 June, IAG Cargo which includes British Airways, Iberia, and Aer Lingus combined handled 343,000 tonnes of cargo, a slight 0.9 per cent rise on the 340,000 tonnes in the same period last year.

In the six months of this year, cargo revenue was up 3.5 per cent on the same period last year at €557 million (2017: €538 million).

IAG Cargo chief executive officer, Lynne Embleton said: “The airfreight market has continued to see relatively strong growth throughout the first half of 2018. Our Q2 performance has been boosted by on-going growth in our premium products and robust regional performance in markets such as Asia Pacific, Europe and North America.

“Our focus is firmly on enhancing customer experience as we make significant investments at both our London and Madrid hubs, including the construction of a new Constant Climate centre in Madrid and the continued development of Premia, our new premium freight facility in London. Construction is underway, with steelwork almost complete and the installation of a new material handling system now in progress.

“In July, we launched our new Critical Service Centre, a customer service team dedicated to our highest priority product, Critical. The team of emergency solution experts monitor, advise and implement the shipment journey for our customers. We have taken almost 2,500 bookings of our Critical product in the first half of 2018 alone.

“There continues to be huge scope for digital to transform the airfreight industry and we know that to continue to innovate, we must look both inside and outside the industry.

“In June, the third Hangar 51 global innovation programme opened with applicants being able to take part in the first ever ‘Cargo specific’ category.

“We look forward to working with the next generation of technology and logistics companies to find relevant solutions for our business.

“As we enter the second half of 2018, we remain focused on investing in our operation, embracing digital innovations and developing our products and services to enhance how we deliver for our customers.”