Virgin Atlantic Cargo sees record-high revenues
Fiscal-year 2011-2012 brought record-breaking growth to Virgin Atlantic Cargo. The UK-based freight carrier saw revenue surge 7 percent, year-over-year, to £239.6 million, the highest annual revenue Virgin Atlantic Cargo has ever seen in its 28-year history.
In a press release, the freight carrier attributed this performance to a 12 percent, year-over-year, improvement in yield during the financial year. Despite this substantial increase, Virgin Atlantic Cargo actually saw volumes slide 5 percent from fiscal-year 2010-2011.
Still, the carrier’s double-digit gains in Europe, the Middle East and Africa, as well as the Americas regions, offset such declines. Virgin Atlantic Cargo saw revenues rise 13 percent, year-over-year, in the EMEA region during the fiscal year, with business in the Americas improving 15 percent, year-over-year.
The carrier’s business in the Asia-Pacific region wasn’t quite so profitable, however. Virgin Atlantic Cargo’s revenue in the Asia-Pacific lagged 7 percent from fiscal-year 2010-2011 — a testament to sluggish economic conditions and the absence of a peak season in some Far East markets, the carrier asserted in the press release.
John Lloyd, director of Virgin Atlantic Cargo, said these conditions make the carrier’s strong performance in the fiscal year even more impressive. “What marks this result as particularly significant is that it was achieved in the context of both a marginal decline in our share of capacity and in a year when total market volumes failed to grow,” he said in a statement.
“At the root of our second successive year of record cargo revenues was a series of internal initiatives designed to improve our efficiency,” Lloyd continued.
Virgin Atlantic Cargo also benefited from its partnership with Virgin Australia during the financial year. Cargo traffic on Virgin Australia’s U.S.-to-Australia routes contributed to the 25 percent, year-over-year, hike in revenue from joint venture partners that Virgin Atlantic Cargo reported during fiscal-year 2011-2012.