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Excess capacity blamed for flattening IAG revenues in 2015
IAG Cargo today blamed "excess capacity and reduced demand" for a 4.6 per cent fall in adjusted commercial revenues in 2015.
While it reported a 3.2 per cent rise in commercial turnover, to EUR1 billion (US$1.09 billion) for the year, revenues fell on a like-for-like basis.
Market conditions have continued to be challenging and yield for the year was down four per cent on 2014. Volumes remained flat, while capacity grew by three per cent.
"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." said IAG Cargo CEO Drew Crawle.
"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 labour disruption, 2015 was a year where the market forces of supply and demand became increasingly imbalanced, Mr Crawle said.
"We have exercised strict capacity management. Our 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," he said.
In 2016 the company said it would will launch key cargo destinations such as Lima, San Juan and, San Jose, California and San Jose.
"IAG Cargo's model and clear strategic direction has proven its worth in 2015 and we remain confident that the right strategy is in place for 2016."
While it reported a 3.2 per cent rise in commercial turnover, to EUR1 billion (US$1.09 billion) for the year, revenues fell on a like-for-like basis.
Market conditions have continued to be challenging and yield for the year was down four per cent on 2014. Volumes remained flat, while capacity grew by three per cent.
"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." said IAG Cargo CEO Drew Crawle.
"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 labour disruption, 2015 was a year where the market forces of supply and demand became increasingly imbalanced, Mr Crawle said.
"We have exercised strict capacity management. Our 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," he said.
In 2016 the company said it would will launch key cargo destinations such as Lima, San Juan and, San Jose, California and San Jose.
"IAG Cargo's model and clear strategic direction has proven its worth in 2015 and we remain confident that the right strategy is in place for 2016."
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