IAG Cargo attributes decreased revenue to 'market conditions'
IAG Cargo reported Friday commercial revenue of 1 billion euros (US$1.3 billion) in 2013, a decrease of 11.8 percent compared to 2012.
Volumes of 5.6 billion cargo tonne kilometers (CTKs) in 2013 represent a decrease of 7 percent year over year. Overall yield for the year decreased by 5.2 percent.
IAG Cargo said exchange rate fluctuations, notably the strengthening of the euro against other currencies, continue to have a significant effect on IAG Cargo revenues and yield. At constant exchange rates, the 2013 yield would be down 2.3 percent instead of 5.2 percent.
“Market conditions remain challenging due to the global expansion in air cargo capacity and weak demand,” Steve Gunning, CEO of IAG Cargo, said. “We continue to focus on improving operational performance across our business, delivering a first-rate customer service and controlling costs. In these conditions, we ensure the yields we achieve at least cover our marginal costs. These costs include the fuel burn associated with the cargo in the belly-holds of our aircraft.”