Air, Freight News

IAG revenue down in a tough market

[ November 8, 2013   //   Chris ]

IAG Cargo reported commercial revenue down 14.1% against the same period last year in its Q3 results (July to September), at €256 million. The Iberia-BA joint venture blamed the strengthening of the Euro against other currencies over the last year for some of the reduction. At a constant exchange rate, Q3 revenue would be down 9.4 per cent.

Volume was 1,394 million cargo tonne kilometres, a decrease of 7.7% on Q3 2012. Cargo capacity was down 2.0 per cent while overall yield decreased by 7% versus the same period last year – but excluding the effect of exchange brings this down to only a 1.9% decrease.

Steve Gunning, managing director at IAG Cargo commented: “Air cargo demand remains weak and our results have been significantly impacted by exchange rate movements. Despite the difficult trading conditions, we have managed broadly to protect our yield thanks, in part, to the strong performance of our premium product range.”

Tags: British Airways, IAG, Iberia, Steve Gunning