IAG cargo revenue drops 7.5% without maindeck

IAG Cargo saw its cargo revenue decline 7.5 per cent in 2014 from the previous year, due largely to the fact of British Airways (BA) and Iberia quit freighter operations when BA terminated the leases on its B747-8Fs last year.


IAG cargo revenue drops 7.5% without maindeck


IAG Cargo saw its cargo revenue decline 7.5 per cent in 2014 from the previous year, due largely to the fact of British Airways (BA) and Iberia quit freighter operations when BA terminated the leases on its B747-8Fs last year. The carrier continued to see a fall in yields, down 3.2 per cent on annual commercial revenue (flown revenue plus fuel surcharges) of €992 million – in 2013 overall yields fell 5.2 per cent – or 2.3 per cent at constant exchange rates.

The sliding revenue and yield was accompanied by a 3.3 per cent drop in traffic to 897,000 tonnes. The decline in traffic widened to 3.7 per cent in the fourth quarter but revenue was down just 2.9 per cent at €268 million.

The exit from maindeck operations pulled down British Airways’ cargo revenues by 13.2 per cent to €811.6 million, instead opting to buy capacity on Qatar Airways’ freighters. “While the new operating model reduces total cargo revenue reported, it is more flexible and generates better margins whilst maintaining the key trade lane between Hong Kong and Europe,” IAG said.

Excluding the long haul freighter business, volumes measured in cargo tonne kilometres was up 6.7 per cent on the back of a 2.3 per cent increase in capacity, but the yield per tonne declined 3.2 per cent from 2013 due to excess capacity in the global air cargo market. Iberia’s cargo revenue shrank 3.1 per cent to €253 million.