Strong early peak as Indian volumes boost IAG Cargo performance

06/12/2016

IAG Cargo peak volumes out of the Indian market have so far outperformed expectations, primarily as a result of a rise in the carrier’s e-commerce prioritise traffic from the region.

 

The cargo operator saw tonnage rise by 15% between August and October in 2016 with volumes up 41% in October when compared to the same period last year.  The US and the UK are key destinations for freight departing India, with commodities including printed and packaging materials, clothing and household goods.

“India has seen an exceptionally strong start to the peak,” commented David Shepherd, Commercial Director at IAG Cargo.  “Not only have we seen an increase in the number of consignments being carried, we’ve also seen increases in the average weight of those consignments.  This strong start to the peak is being driven, to a significant extent, by the cross-border growth of e-commerce which has meant a corresponding rise in the need for express shipments.”

With five gateways serving India and a fleet of next generation aircraft including the B787-9, IAG Cargo is well placed to manage the high volume demand out of the region.  While these volumes are seasonal, the country’s e-commerce market is set to boom over the long term, with global businesses investing significantly into India[1] and financial experts predicting India’s worth to reach $119 billion by 2020[2].

Shepherd added, “India has not been the only strong performing region for us over the peak season.  More broadly we’ve seen a good performance across our global network with high demand in particular from Asia to Latin America which we are able to support through our 32 gateways into the region.   We’re also seeing the UK market showing a level of demand over last couple of weeks that we haven’t seen over the past year which is encouraging.”

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