IAG’s Cargo Revenue Tumbles More Than 14 Percent

IAG’s Cargo Revenue Tumbles More Than 14 Percent

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.