The freight airline created from the merger of British Airways World Cargo and Iberia Cargo in April 2011 posted $1.12 billion in revenues on flat volumes as capacity grew 3 percent, according to a statement from the company.
IAG Cargo posted revenues of 1.02 billion euros (U.S. $1.12 billion) for the full year in 2015, a 3.2 percent increase from 2014, according to a statement from the company.
The freight airline noted, however, that commercial revenues fell 4.6 percent when adjusted “to reflect a directly comparable operation.” On a like-for-like basis (excluding the impact of acquiring Aer Lingus Cargo and the exit of LHF and at constant currency exchange rates) overall yield fell 4 percent on the year compared with 2014.
IAG said airfreight volumes remained flat from the previous year, while cargo capacity expanded 3 percent.
“These are resilient results in the face of challenging market conditions, where excess capacity and reduced demand are leading to significant price and yield pressures,” CEO Drew Crawley said of the results. “These structural changes to the market further reinforce our strategy of aggressive cost discipline coupled with a focus on growing our premium product offering.
“Despite an initial boost from the West Coast port strike, 2015 was a year where the market forces of supply and demand became increasingly imbalanced,” he added. “We have exercised strict capacity management where needed and grown our premium products through investing in infrastructure, network and expertise. Our premium product revenue growth is testament to this, with our express product growing 141 per cent in 2015, and our pharmaceutical offering growing by 371 per cent.”
Looking ahead to 2016, Crawley said the company “will be making major infrastructure announcements which will deliver next generation facilities and premium product experience for our customers.”
“In addition we will launch key cargo destinations such as Lima, San Juan and, San Jose, California and San Jose, Costa Rica. We will also be completing the full integration of Aer Lingus Cargo, which will open previously unavailable markets and flows for our customers.”
IAG Cargo, the single airfreight carrier created following the merger of British Airways World Cargo and Iberia Cargo in April 2011, currently covers a network of over 350 destinations following the integration of additional airlines into the business, including Vueling and bmi.
IAG Cargo boost revenues 3.2% in 2015
