IAG Cargo reports a Q1 drop of 11.6 per cent on the back of early exposure to the Covid-19 pandemic due to its significant presence in the China market.
The carrier’s Q1 2020 results from 1 January to 31 March 2020, saw commercial revenues of EUR 246 million.
Yield fared better, up 4.8 per cent for the quarter but that was overwhelmed by sold tonnes that were down 14.9 per cent and CTK volumes down 15.7 per cent. Capacity, meanwhile, declined by 13.8 per cent.
Like many global businesses with an active Chinese market, IAG Cargo felt the impact of the COVID-19 pandemic early. The expected dip in activity around Chinese New Year was followed by a prolonged drop in manufacturing which continued throughout February and March as the Corona outbreak took hold.” – Lynne Embleton, CEO of IAG Cargo
Noting the impact Covid-19 had on the air freight market, Lynne Embleton, CEO of IAG Cargo, says: “In January and early February our performance was solid; Europe and Latin America were stable, there was a noted dynamism in North America where our premium products were performing strongly and the Asia Pacific region showed promise for the year ahead.
“However, like many global businesses with an active Chinese market, IAG Cargo felt the impact of the COVID-19 pandemic early. The expected dip in activity around Chinese New Year was followed by a prolonged drop in manufacturing which continued throughout February and March as the Corona outbreak took hold. This saw our APAC & Middle East business affected the most with a 19.2 per cent revenue decline versus the same period last year.
With the near total withdrawal of passenger bellyhold cargo capacity IAG was left scrambling like a great many airlines around the world.
Embleton says: “IAG Cargo took immediate steps to provide creative solutions for our customers. We adapted quickly and we were one of the first airline groups to announce scheduled cargo-only flights using passenger aircraft. In doing so we have kept routes around the world open to cargo.
“Our commercial team were also quick to establish and communicate charter opportunities; offering our customers and governments a further solution for their capacity requirements.
“The first quarter of 2020 has posed unprecedented challenges – for the air cargo industry, for businesses, and for society at large. It has called for adaptability, resilience and co-operation. The essential role that IAG Cargo performs; maintaining vital supply chains and supporting global trade has never been so visible or more evident,” Embleton adds.