International Airlines Group subsidiary IAG Cargo saw revenues slip 2.3 percent year-over-year to 256 million euros (U.S. $278.7 million) in the first quarter of 2017, despite growing cargo volumes 3.6 percent compared with the same 2016 period.
IAG Cargo’s new long-haul, low-cost airline brand, LEVEL, which was launched in March of this year, will be integrated into the airline’s cargo operations from June 2017, IAG said in a statement.
LEVEL joins IAG Cargo’s four other airline brands – British Airways, Iberia, Aer Lingus and Vueling.
IAG Cargo said LEVEL will open up a new long-haul, wide-body cargo gateway in Barcelona, providing three new routes into the Americas. This will be the first time IAG Cargo has offered long-haul services from Barcelona.
Utilizing A330-200 aircraft, the service will fly to Los Angeles (LAX), Punta Cana (PUJ) in the Dominican Republic, and Buenos Aires (EZE), Argentina.
Just last week, IAG Cargo released its financial results for the first quarter of 2017, with revenues falling 2.3 percent year-over-year to 256 million euros (U.S. $278.7 million).
However, cargo volumes and capacity grew by 3.6 percent and 12 percent year-over-year, respectively, during the quarter.
“Increased demand from Asia Pacific and Europe has led to a growth in airfreight volumes between the two regions, driven in part by sea freight constraints,” IAG Cargo Chief Financial Officer Lewis Girdwood said of the results. “With over 150 flights per week to and from 15 Asian destinations, we are well placed to work closely with our freight forwarding partners to help alleviate this pressure and ensure shippers’ supply chains remain uninterrupted. Through the first quarter of the year we saw a 34 per cent rise in volumes from Europe to Asia Pacific when compared to the same period in 2016, with fashion, spare parts, fresh fish and leather goods performing particularly well.
“UK and European markets have also performed well throughout the first quarter of the year, with notable strong North American demand from the perishables and aerospace sectors,” he added.
Overall though, Girdwood noted the global airfreight market remains challenging, with poor weather conditions in Latin America affecting substantial fresh produce flows and a continued oversupply of capacity in the market placing pressure on yields.
IAG Cargo’s newest product, Critical, has now surpassed 1,000 shipments since its launch, Girdwood said. Critical, which launched in October 2016, is an emergency airfreight product that ensures critical shipments are both intensely monitored and guaranteed to fly.
Looking ahead to the second quarter of 2017, IAG Cargo will introduce a new website for its customers that aims to “greatly simplify the way forwarders book airfreight with IAG Cargo,” Girdwood said.
IAG Cargo adds new airline brand
