International Consolidated Airlines Group (IAG) has seen cargo revenue fall by 6.9 per cent in the first half of 2016 and tonnage has also declined.
The cargo division, IAG Cargo has seen revenue fall to 503 million euros ($557.3 million) compared to 540 million euros in the first half of 2015. Cargo volumes have fell by 13.1 per cent to 375,000 tonnes compared to 432,000 tonnes in 2015.
IAG chief executive officer, Willie Walsh says: “Our performance this quarter saw a negative currency impact of €148 million, primarily due to the weak pound. Numerous external factors affected our airlines including the impact of terrorism, uncertainty around the UK’s EU referendum and Spain’s political situation and increased weakness in Latin American economies.”
“This led to a softer than expected trading environment, especially in June. In addition, the airlines’ operations have been considerably disrupted by 22 air traffic control strikes in Europe so far this year.”
IAG as a whole has seen revenue increase by 4.1 per cent to 10.8 billion euros while profit was 489 million euros before exceptional items, and 554 million afterwards.
IAG Cargo is still facing legal proceedings in the English courts following the European Commission (EC) fining British Airways and 10 other airlines for participating in an air cargo price cartel. The decision was partially annulled following an appeal to the general court of the European Union though IAG says it is not clear what the EC’s next step will be.
The company says it is not possible to predict the outcome of the proceedings or similar litigation in other jurisdictions including Germany, the Netherlands and Canada.
