A weak Asia Pacific market has been partially offset by South America says IAG Cargo announcing its Q1 2019 results, reporting revenues of EUR 275 million, down 2.5 per cent at constant currency.
Sold tonnes were up 2.5 per cent, while yield for the quarter from 1 January to 31 March was down 5.0 per cent at constant exchange. Cargo tonne kilomtres (CTK) volumes were also up 2.6 per cent and capacity grew by 4.8 per cent.
“As expected, the international air freight market has declined this quarter,” comments Lynne Embleton, CEO at IAG Cargo. “A weak Asia Pacific market has been partially offset by strong performance from South America and Africa, helping us to steadily grow volumes. This change in regional mix has reduced our average yields.”
The UK-based carrier group says investment in premium products has continued. In February, IAG Cargo opened its Good Distribution Practice (GDP) certified Madrid Constant Climate Centre. This new facility is already generating strong flows of pharmaceuticals to the burgeoning Latin American market, says Embleton, including significant shipments of MMR and diphtheria vaccines.
Meanwhile, at its London Heathrow hub, the Group has expanded its Critical Service Centre to now offer 24/7 round-the-clock support to its Critical customers on their highest priority, must-fly shipments.
“We have expanded the breadth of our network with the addition of our four times weekly services to Osaka, and now provide customers with three gateways into and out of Japan,” Embleton adds.
“As we continue to broaden our customer base, we have partnered with companies from outside the industry to provide new fully-integrated products directly to consumers. Partnering with Santa Fe Relocation, we are proud to have become the first air freight carrier to offer a simple and convenient home relocation service. Additionally, our new partnership with PetAir UK has helped simplify the world of pet travel.
“No doubt market conditions throughout 2019 will continue to be challenging, but our pipeline of products, digital services and operational investment will position us well to become the carrier of choice for customers worldwide.”