Challenging market conditions cause 4.5% drop
The cargo airline group’s revenues stood at 238 million euros for the third quarter of 2015 compared to the 236 million euros for the third quarter of 2014.
IAG Cargo, which is the amalgamation of the cargo divisions at British Airways, Iberia and Aer Lingus, reported revenues of 238 million euros (U.S. $262.03 million) for the third quarter of 2015, compared to the 236 million euros for the third quarter of 2014.
Aer Lingus, the national airline of Ireland, which was recently acquired by the IAG Group, is included in the consolidated results from Aug. 18, 2015.
Challenging market conditions that remained in the third quarter placed pressure on yields, which dropped 4.5 per cent at constant exchange rates, according to IAG.
In addition, third quarter volumes fell 4.7 percent year-over-year at the airfreight carrier.
“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 CEO Steve Gunning said in a statement. “In Q1, the West Coast port strike in the US gave the air cargo market some respite from this new normal, but the past two quarters have seen a return to more challenging conditions.”
“In light of this, our strategy and operational model is more relevant than ever; with a strong focus on cost control, premium products and smart partnerships critical to our success,” Gunning said.