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IAG Cargo Q2 2016 financial results

IAG Cargo has today announced its Q2 2016 results, reporting commercial revenue of €241m over the period from April 1 to June 30, 2016, a decrease of 12.0 per cent compared to 2015. Adjusting the prior year's figures to reflect a directly comparable operation, commercial revenue decreased 12.8 per cent versus last year at constant exchange.

Challenging market conditions continue, on a like for like basis IAG Cargo’s volumes were flat, while yields decreased 13.4 per cent at constant exchange.

Drew Crawley, CEO at IAG Cargo, commented: “Trading conditions have become more competitive in 2016. Flat demand for consolidated general cargo and excessive freighter capacity in the industry is causing supply to continually outstrip demand. These challenges are not solely restricted to air freight, with increasing competition and capacity coming from road, rail and sea freight, exerting significant price pressures. These challenges are not new and despite these conditions, we have grown our revenue share.

“We continue to concentrate on the growth of our premium products, strong cost control and precision management of our capacity and yields. Despite the weak demand for general cargo, our premium products are consistently seeing strong tonnage growth and we are further investing in our premium portfolio.

“Our customers continue to value our extensive network, which was recently augmented with the addition of Aer Lingus. With our continued focus on smart partnerships and interline agreements, such as those with Finnair and Qatar, we are in the best possible position to compete effectively and offer our customers worldwide network reach.

“We have successfully launched several new South American routes this year, which are proving to be strong cargo destinations. These routes have been well received by our customers, with volumes being driven from pharmaceutical and perishable sectors in particular. Our new Madrid to Shanghai service commenced last month and we will also be adding several new routes to our network, such as, London to Santiago, as well as Madrid to both Tokyo and Johannesburg.

“The IAG Cargo platform, alongside our partnerships and premium focus, place us in a strong position to compete effectively in the current market.

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