The airfreight carrier saw revenues increase 7.6 percent year-over-year to 260 million euros (U.S. $304 million) in the second quarter of 2016, with Europe, India and Asia showing the strongest growth.
IAG Cargo reported commercial revenue of 260 million euros (U.S. $304 million) for the second quarter of 2017, an increase of 7.6 percent compared to the year prior.
The company said overall yield for the quarter was up 1.1 percent while volumes and capacity grew 6.4 percent and 5.9 percent, respectively.
“The airfreight market continues to be very competitive. Our overall performance has been robust and the market has gradually improved through the first half of 2017,” said CEO Lynne Embleton. “This improvement has come from ongoing growth in cross border e-commerce and pharmaceutical shipments, with encouraging regional performance in markets such as Asia Pacific and Europe.”
Demand from Asia Pacific has been strong, with volumes up 8.7 percent compared to the same period in 2016, said IAG. “Part of this increase has been driven by the two-way sea freight congestion between China and Europe, although volumes have also been boosted by strong consumer demand for products ranging from high end electronic tech to the globally trending fidget spinners,” said Embleton.
Embleton notes that India has been a strong market mainly due to a high demand for express and time-sensitive freight. “Our time and temperature sensitive offering, Constant Climate, continues to support a burgeoning pharmaceutical industry in India,” she said.
IAG Cargo announced the integration of its “Critical” product with Constant Climate shipments for fast, highly sensitive shipping. The company also recently began offering LEVEL, its low cost long haul operation, with a new wide-body cargo gateway based in Barcelona. “This follows the successful integration of Aer Lingus and opens up three new routes into the Americas from Barcelona to Los Angeles (LAX), Punta Cana (PUJ) and Buenos Aires (EZE),” said Embleton.
“While IATA’s revised forecasts for 2017 are positive, we anticipate that the challenges we face as an industry, with increasing competition and capacity coming from road, rail and sea freight, will continue. In this competitive market we’re focused on developing our products, embracing digital innovations and always looking to improve how we deliver for our customers,” concluded Embleton.
IAG Cargo reports strong Q2 revenue growth
