IAG Cargo sees 12% rev drop on freighter exit

IAG Cargo announced its Q2 results from 1 April to 30 June, reporting a 12 per cent drop in commercial revenue (flown revenue plus fuel surcharges) of €238 million versus €271 million for the same period last year, as a result of depressed yields and a significant drop in capacity after the carrier’s move to cease operating its own dedicated freighters in April.


IAG Cargo sees 12% rev drop on freighter exit


IAG Cargo announced its Q2 results from 1 April to 30 June, reporting a 12 per cent drop in commercial revenue (flown revenue plus fuel surcharges) of €238 million versus €271 million for the same period last year, as a result of depressed yields and a significant drop in capacity after the carrier’s move to cease operating its own dedicated freighters in April.

On a like-for-like basis, adjusting prior year figures to reflect a directly comparable freighter operation, commercial revenue remained flat versus last year, IAG said. Following the cessation of the long haul freighter leasing contract with GSS on 30 April 2014, IAG Cargo ran a significantly reduced freighter programme, which is reflected in the following figures. Volumes of 1.32 billion cargo tonne kilometres (CTKs) for the quarter decreased by 5.1 per cent compared to Q2 2013, while capacity decreased by 5.6 per cent. Overall yield (commercial revenue per CTK) for this quarter was down 7.4 per cent and down by 2.8 per cent excluding the effect of exchange.

Volumes of 1.32 billion CTKs on a likefor- like basis for the quarter represent an increase of 7.1 per cent compared to Q2 2013, while capacity increased by 3.2 per cent. Overall yield (commercial revenue per CTK) for this quarter was down 6.6 per cent and down by 1.9 per cent excluding the effect of exchange.