International Airlines Group’s cargo revenue in the third quarter of 2013 slumped more than 14 percent year-over-year, almost double the decline in freight traffic.
The merged British Airways-Iberia carrier generated cargo revenue of €256 million (about US$343 million) in the three months through Sept. 30, 2013, against €298 million in the same period in 2012.
Cargo traffic shrunk by 7.7 percent, dragged down by a double digit decline at Iberia, and the yield per metric ton per kilometer was 7 percent lower than a year ago. The lower cargo volume contrasted with a 10.4 percent growth in passenger revenue, which helped IAG to increase operating profit in the quarter to €693 million, from €263 million in the 2012 period.
IAG’s cargo revenue in the first nine months of 2013 decreased 10.2 percent year-over-year to €797 million, and traffic dipped 8.2 percent, matching the reduction in capacity. The decline continued into October with volume down 7.2 percent from a year ago, as Iberia’s traffic slumped 13.8 percent and British Airway’s traffic sunk 5.5 percent.
IAG said it expects to book an operating profit before exceptional items of about €740 million for 2013, compared with a loss of €896 million in 2012.