IAG Cargo has reported commercial revenue (flown revenue plus fuel surcharges) of €298 million in the quarter ending 30 September. This represents an increase of 3.5% against the same period last year.
The group, comprising British Airways World Cargo, Iberia Cargo and bmi Cargo, reported volumes of 1.51 billion freight tonne kilometres (FTKs) for the quarter, which represents an increase on the same period last year of 1.1%. Cargo capacity for the period was up 3.4%
Overall yield (commercial revenue per FTK) for the quarter was up by 2.3% on the same period last year.
Steve Gunning, MD of IAG Cargo said: “The economic climate remains challenging, but we continue to structure our business to cope with the volatile market conditions.
“Against our competitors, our performance has been positive.
“Our focus remains on maximising our network connections to best serve our customers, continuing to develop our range of accessible distribution channels and delivering high-quality premium products across our extended network.”
In 2011 the IAG Cargo operation had a turnover of almost €12 billion. It has a workforce of more than 2,700 and its network includes more than 350 destinations.
Overall, the IAG group made an operating profit of just £13.5 million in Q3.
The results show Iberia is the weak link in the group, making a standalone operating loss of £209 million in the period, while BA contributed operating profits of £228 million.
IAG has announced a restructuring plan for Iberia, which will result in 4,500 job losses at the Spanish carrier, its fleet being downsized by 25 aircraft and its routes cut by 15% in 2013, to concentrate on those which are most profitable.
“Iberia is in (a) fight for survival,” the carrier’s CEO, Rafael Sanchez-Lozano, said in a statement.
Source: http://www.lloydsloadinglist.com/
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