IAG Cargo sees revenue decline in first quarter of 2019
May 10, 2019: International Airlines Group (IAG) Cargo has reported revenues of €275m over the period from January 1 to March 31, 2019, a reduction of 2.5 percent on 2018 at constant exchange.
Sold tonnes were up 2.5 percent, whilst yield for the quarter was down 5.0 per cent at constant exchange. CTK volumes were also up 2.6 per cent and capacity grew by 4.8 percent.
Lynne Embleton, CEO at IAG Cargo commented: “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 is the single business created following the merger of British Airways World Cargo and Iberia Cargo in April 2011. Following the integration of additional airlines into the business, including Aer Lingus, Vueling and bmi, IAG Cargo now covers a global network of over 350 destinations.