Revenue rises but volumes remain flat for IAG Cargo

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British Airways Boeing 777-200
British Airways Boeing 777-200

Revenue at IAG Cargo has increased 9.6 per cent in the second quarter of 2018 with higher yields making up for volumes remaining flat.

For the period between 1 April and 30 June, commercial revenue increased 9.6 per cent at constant exchange rates to €281 million, with yields rising 10 per cent.

Sold tonnes remained flat at 173,000 tonnes and cargo tonne kilometres dipped by 0.4 per cent to 1.4 billion.

IAG Cargo chief executive officer, Lynne Embleton says the airfreight market was relatively strong in the first half of the year, with the second quarter benefiting from the growth in premium products and regional performance in markets including Asia Pacific, Europe and North America.

Facilities are being upgraded with the construction of a new Constant Climate centre in Madrid and the development of the Premia premium freight facility in London.

She adds: “In July, we launched our new Critical Service Centre, a customer service team dedicated to our highest priority product, Critical. The team of emergency solution experts monitor, advise and implement the shipment journey for our customers. We have taken almost 2,500 bookings of our Critical product in the first half of 2018 alone.”

Embleton also says there is scope for digital transformation across the airfreight industry, which is something IAG Cargo is looking to embrace.

She says: “In June, the third Hangar 51 global innovation programme opened with applicants being able to take part in the first ever ‘Cargo specific’ category.  We look forward to working with the next generation of technology and logistics companies to find relevant solutions for our business.”