IAG Cargo has high hopes for peak season after strong Q3

British Airways and Iberia aircraft at London Heathrow, UK, 17 November 2010

IAG Cargo revenue has increased by 7.9 per cent in the third quarter to €259 million ($304 million) despite tonnage seeing a small dip.

Tonnage dipped by 0.6 per cent to 167,000 tonnes, though cargo tonne kilometres (CTK) were up by 7.7 per cent to 1.4 billion.

In the nine months up to 30 September, cargo revenue was up 4.3 per cent to €775 million, CTK increased by 5.9 per cent to 4.2 billion but tonnage was down 8.3 per cent to 498,000 tonnes.

IAG Cargo chief financial officer, Lewis Girdwood says demand grew faster than capacity, and the upswing in the market should mean a strong peak and year end.

He says: “These results have been largely driven by demand from Asia-Pacific which has continued to deliver strong volumes following a positive second quarter.”

“The ocean congestion between China and Europe continues to be a driver for the region’s success and we have seen high demand for machinery, auto-parts and industrial goods on this route. Our time sensitive products Prioritise and Critical have supported customer demand in the region, ensuring guaranteed delivery of parts.”

He adds: “As we enter the final months of the year we have ensured that we are well prepared for the peak season so we can continue to deliver for our customers over the busiest time in the air cargo calendar.”

Total revenue for IAG was up 1.3 per cent to €17.5 billion in the nine months to 30 September, and by two per cent to €6.6 billion in the third quarter.