Slight revenue rise in Q3 for IAG Cargo

British Airways and Iberia aircraft at Heathrow Airport

IAG Cargo has seen its quarter three commercial revenue rise slightly to 238 million euros, up from 236 million euros in the same period last year.

The quarter covered the period from 1 July to 30 September.

IAG says in the third quarter, market conditions have “remained challenging” which has placed pressure on yields, that fell 4.5 per cent at constant exchange rates, with volumes also finishing 4.7 per cent down on the prior year.

IAG Cargo chief executive officer, Steve Gunning, says: “We have made the point in the past that the air cargo market has established a ‘new normal’, with excess capacity and reduced demand leading to significant price and yield pressures.

“In Q1, the West Coast port strike in the US gave the air cargo market some respite from this new normal, but the past two quarters have seen a return to more challenging conditions.

“In light of this, our strategy and operational model is more relevant than ever; with a strong focus on cost control, premium products and smart partnerships critical to our success.

“We have made good progress over the quarter against all these strategic goals, and our decision to remove our wet-lease freighter capacity from our fleet and focus on a partnership model has proved justified.

Gunning adds: “We have also seen our premium product strategy succeed, with particularly strong growth for our important Constant Climate product. Premium products as a whole now represent more of our business than ever, with record revenue and tonnage figures.”