IAG Cargo announces Q3 financial results

Commercial revenue of €256 million

 IAG Cargo today announces its Q3 results from July 1 to September 30, 2013, reporting commercial revenue (flown revenue plus fuel surcharges) of €256 million, a decrease of 14.1% against the same period last year.

Changes in exchange rates, in particular the strengthening of the Euro against other currencies over the last year, have had a significant impact on revenues. At a constant exchange rate, Q3 revenue would be down 9.4%.

Volumes of 1,394 million cargo tonne kilometres (CTKs) represent a decrease of 7.7% versus Q3 2012. Cargo capacity was down 2.0%.

Overall yield (commercial revenue per CTK) for the quarter decreased by 7% versus the same period last year. Excluding the effect of exchange brings this to a 1.9% decrease.

Steve Gunning, managing director at IAG Cargo comments: “Air cargo demand remains weak and our results have been significantly impacted by exchange rate movements. Despite the difficult trading conditions, we have managed broadly to protect our yield thanks, in part, to the strong performance of our premium product range.

Our focus on premium products and network continues. We recently opened the Constant Climate Centre at Heathrow for handling pharmaceuticals as well as launching a new route to Austin, Texas and expanding services to Hyderabad, which is a major centre for India’s pharmaceutical industry.”

IAG Cargo’s premium product range includes the Prioritise express service, Constant Climate for the transport of temperature-controlled materials and Secure for valuable shipments requiring the highest levels of security.