IAG Cargo reports 7.5% drop in 2014 revenue

Volume increased for the airfreight carrier, but overall yield was down.    IAG Cargo had commercial revenue of 992 million euros (U.S. $1.11 billion) for the full year in 2014, a decrease of 7.5 percent compared to 2013, according to a statement from the company. 
   The airfreight carrier, created from the merger of British Airways World Cargo and Iberia Cargo in April 2011, noted, “On a like for like basis, adjusting the prior year’s figures to reflect a directly comparable freighter operation, commercial revenue increased 2.4 percent versus last year.”
   Cargo volumes for the company in 2014 increased 6.7 percent to 5.45 million cargo ton kilometers (CTKs), while capacity increased 2.3 percent.
   Overall yield, commercial revenue per CTK, was down 3.2 percent year-over-year at constant exchange rates.
   “These are strong results, built on exceptional performance for our premium product portfolio and an increase in load factors over the course of the year,” said CEO Steve Gunning. “In 2014 we delivered on our promise to lead the industry in sensible capacity management; replacing our freighters with capacity agreements on key trade lanes and launching EuroConnector, which benefits customers through time definite services and has increased narrow body usage across our European Network.
   “We have also been at the forefront of industry innovation,” Gunning added. “Following a sizeable investment, for example, IATA has ranked us the leading European carrier for electronic air way bill penetration. We have also continued to innovate around our temperature-sensitive product, winning Good Distribution Practice certification and Wholesale Distribution Authorisation for our Constant Climate Centre at Heathrow – the first such award to be made from a national authority to an air cargo carrier.
   Looking forward, Gunning said, “Our 2014 results have therefore placed us in a strong position for 2015 which we intend to build on by working in partnership with other airlines to improve our network proposition, increase infrastructure investment and continue to provide products and services that add value to customers’ businesses.”