News / IAG Cargo first quarter revenues up despite declining volumes

IAG Cargo has recorded 10.9% upturn in revenues for the three months to March, despite a downturn in freight volumes.

First quarter revenues hit €276m compared to €267m a year earlier, a 3.3$% increase on a non-currency adjusted basis, with the good news in cargo coming amidst a 1,293% increase in group profits.

Chief executive of IAG Cargo Lynne Embleton said the results came amidst a buoyant premium airfreight market.

“We’ve experienced good market conditions across the majority of our regions, with Europe and Asia Pacific – and particularly India – leading the way,” said Ms Embleton.

“Our specialist pharmaceutical offering, Constant Climate, has delivered continued growth, moving life-saving vaccines across the globe.”

Following its launch last year, the carrier’s Critical product has moved some 4,000 shipments and expanded across IAG’s route network.

Ms Embleton said the first three months of 2018 also saw the carrier trial its first airside self-driving vehicle at a UK airport, with further investments expected.

“Our network offering continues to expand with a new route from Madrid to San Francisco launched in April,” she added.

“And a London Gatwick to Toronto service began operating on 1 May, and our first ever Dublin-Seattle flight launches 18 May, while our Heathrow-Nashville flight also launched.”

It seems the carrier’s focus on high-end, expensive shipments may have paid off, with revenues up against a 0.7% drop-off in overall volumes, despite a 3.6% increase in capacity.

The carrier also reported an 11.8% increase in overall yields, but the group does not divulge how this translates in terms of profitability.