EUROPE & CIS: Virgin Cargo sees rising volumes/yields

Rising demand for air cargo enabled Virgin Atlantic Cargo to push up yields in the first quarter with sales rising 36 per cent, driven by a 25 per cent increase in volumes, resulting in annual revenues for the 2009/10 financial year of £161 million (US$250.5 million) from the carriage of 194,000 tonnes of airfreight on […]


Rising demand for air cargo enabled Virgin Atlantic Cargo to push up yields in the first quarter with sales rising 36 per cent, driven by a 25 per cent increase in volumes, resulting in annual revenues for the 2009/10 financial year of £161 million (US$250.5 million) from the carriage of 194,000 tonnes of airfreight on the Virgin Atlantic Airlines and V Australia networks. The airline has also seen healthy yield improvement in the first few months of 2010/11, reflecting the total airfreight market.

Virgin Cargo’s director, John Lloyd warned though, that the recovery could be destabilised by excess capacity in the market. “The challenge now, with capacity rising again in many markets, is to ensure the industry maintains and builds upon this demand by taking sensible decisions on capacity.”

Virgin Cargo said it expects a series of factors to contribute to growth in 2010/11, including V Australia’s increased flying programme, an upturn in volume and yields to and from its markets in the Americas and Caribbean, Africa, India, the UAE, Asia and Australia, and improvements in revenue management operations.