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Virgin Atlantic Cargo's volume up 1.8pc in 'challenging' 2016
VIRGIN Atlantic Cargo carried 218,000 tonnes of freight across its international network in 2016, a volume rise of 1.8 per cent over 2015 in what the carrier called a "challenging market environment".
A strong second half of the year and high peak-season demand helped boost volumes, although John Lloyd, senior vice president of cargo at Virgin Atlantic, noted that, "the impact of overcapacity on yields and the falling value of sterling were major factors" on the lower yields reported. He added that, 'we also saw a reduction in revenues due to route changes driven by passenger demand."
Volume in December were up 5 per cent, year over year, and revenue was 16 per cent above target, adding a final boost to the year's numbers, the New York's Air Cargo World reported.
Virgin accredited its 64 per cent cargo load factor to increased pharmaceutical and e-commerce business. The carrier's trans-Atlantic joint venture with Delta Air Lines also boosted volumes.
Longer-term, the airline's cargo business should benefit from Virgin Atlantic's order in 2016 for 12 cargo-friendly Airbus A350-1000s. When deliveries commence in early 2019, the A350 will "offer a significant improvement in lower deck cargo capacity of between 10 per cent and 22 per cent, depending on configuration," the airline said.
A strong second half of the year and high peak-season demand helped boost volumes, although John Lloyd, senior vice president of cargo at Virgin Atlantic, noted that, "the impact of overcapacity on yields and the falling value of sterling were major factors" on the lower yields reported. He added that, 'we also saw a reduction in revenues due to route changes driven by passenger demand."
Volume in December were up 5 per cent, year over year, and revenue was 16 per cent above target, adding a final boost to the year's numbers, the New York's Air Cargo World reported.
Virgin accredited its 64 per cent cargo load factor to increased pharmaceutical and e-commerce business. The carrier's trans-Atlantic joint venture with Delta Air Lines also boosted volumes.
Longer-term, the airline's cargo business should benefit from Virgin Atlantic's order in 2016 for 12 cargo-friendly Airbus A350-1000s. When deliveries commence in early 2019, the A350 will "offer a significant improvement in lower deck cargo capacity of between 10 per cent and 22 per cent, depending on configuration," the airline said.
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