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IAG Cargo sees Q1 revenue drop 2pc to US$281m despite volume growth

IAG CARGO has posted first quarter commercial revenue of EUR256 million (US$281 million), a year-on-year decline of 2.1 per cent, as overall yield for 2016 contracted by 5.5 per cent. Yet, Q1 2017 volumes were up 3.6 per cent, while capacity grew by 12 per cent.

"Increased demand from Asia Pacific and Europe has led to a growth in air freight volumes between the two regions, driven in part by sea freight constraints," said chief financial officer Lewis Girdwood in a company statement.

"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 continued.

"However, the global air freight market remains challenging overall, 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.

"Conscious that a volatile market place remains a consistent possibility, we remain focused on the continued development of our products and services that enhance our customer offering.

"We are pleased with the development of our newest product, "Critical," which has now surpassed 1000 shipments since its launch helping meet the demands of the emergency shipment market," Mr Girdwood added.
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