IAG Cargo reports revenue fall of 2.5% in first quarter

posted on 10th May 2019 by Justin Burns

IAG Cargo has today reported revenues of €275 million for the first quarter of 2019 over the period from 1 January to 31 March – a decline of 2.5 per cent on 2018 at constant exchange – with challenging market conditions in Asia Pacific cited as the reason for the fall.

Sold tonnes were up 2.5 per cent to 174,000 tonnes (2018: 170,000 tonnes), whilst yield for the quarter was down five per cent at constant exchange.

Cargo tonne kilometre (CTK) volumes were also up 2.6 per cent to 1.39 billion and capacity grew by 4.8 per cent.

IAG Cargo chief executive officer, Lynne Embleton (pictured above) said: “As expected, the international air freight market has declined this quarter. A weak Asia Pacific market has been partially offset by strong performance from South America and Africa, helping us to steadily grow volumes. This change in regional mix has reduced our average yields.

“Our investment in premium products has continued. In February, we opened our Good Distribution Practice (GDP) certified Madrid Constant Climate Centre and, as a result, have already seen strong flows of pharmaceuticals to the burgeoning Latin American market including significant shipments of MMR and diphtheria vaccines.

“Meanwhile, at our London Heathrow hub, we have expanded our successful Critical Service Centre to now offer 24/7 round-the-clock support to our Critical customers on their highest priority, must-fly shipments.

“We have expanded the breadth of our network with the addition of our four times weekly services to Osaka, and now provide customers with three gateways into and out of Japan.

“As we continue to broaden our customer base, we have partnered with companies from outside the industry to provide new fully-integrated products directly to consumers. Partnering with Santa Fe Relocation, we are proud to have become the first air freight carrier to offer a simple and convenient home relocation service. Additionally, our new partnership with PetAir UK has helped simplify the world of pet travel.

“No doubt market conditions throughout 2019 will continue to be challenging, but our pipeline of products, digital services and operational investment will position us well to become the carrier of choice for customers worldwide.”

IAG Cargo includes capacity on British Airways, Iberia, Aer Lingus, Level, Vueling and bmi, and covers a global network of over 350 destinations.