International Airlines Group posted a slight increase in cargo revenue in the third quarter despite a bigger decline in volume as the Anglo-Spanish carrier scaled back freighter operations.
The British Airways-Iberia carrier’s freight revenue edged 0.8 percent higher to 238 million euros [$262 million] in July-September from 236 million euros a year earlier.
Cargo volume was down 5.5 percent at 207,000 tonnes against 219,000 tonnes last time and revenue, measured in cargo tonne kilometres, increased 5.8 percent.
Challenging market conditions placed pressure on yields, which declined by 4.7 percent at constant exchange rates, the carrier said.
“We have made the point in the past that the air cargo market has established a “new normal”, with excess capacity and reduced demand leading to significant price and yield pressures,” IAG Cargo’s CEO Steven Gunning said.
The congestion at U.S. West Coast ports gave the market some respite from this new normal in the first quarter ... “but the past two quarters have seen a return to more challenging conditions.”
Cargo revenue for the first nine months grew 2.6 percent to 743 million euros from 724 million euros, but was down 8.3 percent in constant currencies.
Volume shrank 3.2 percent during the period to 639,000 tonnes from 660,000 tonnes.
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