Virgin Atlantic Cargo revenues drop in 2016 despite increased volumes

The airfreight carrier saw volumes rise 1.8 percent to 218,000 metric tons during the year despite a reduction in revenues caused by route changes driven by passenger demand, according to John Lloyd, senior vice president of cargo at Virgin Atlantic.    Virgin Atlantic Cargo saw airfreight volumes rise 1.8 percent in 2016 despite a “challenging market environment,” the company said in a statement.
   The airfreight carrier transported 218,000 metric tons of cargo during the year despite a reduction in revenues caused by route changes driven by passenger demand, according to John Lloyd, senior vice president of cargo at Virgin Atlantic.
   Cargo revenues at the Crawley, United Kingdom-based airline fell 15.9 percent year-over-year to 174 million euros (U.S. $188.8 million) in 2016.
   “2016 was a challenging year for a whole variety of reasons,” said Lloyd. “The impact of overcapacity on yields and the falling value of sterling were major factors and we also saw a reduction in revenues due to route changes driven by passenger demand.
   “The second half of the year was much stronger, particularly for business from the UK, and it ended with a welcome pre-Christmas peak season which resulted in some improvement in average yield,” he added. “We expect to see some more stability return to the market this year.”
   Looking ahead to 2017, the airline said it expects performance to improve thanks, in part, to the launch of daily Heathrow-Seattle flights, a weekly service from London Gatwick Airport to Varadero in Cuba, and new flights from Manchester to San Francisco, Boston and New York JFK.
   Virgin Atlantic will increase cargo capacity with the receipt of 12 Airbus A350-1000s, ordered in 2016, as part of an investment program to replace its entire fleet in the next ten years. The A350 aircraft, scheduled for delivery beginning in early 2019, will boost lower deck cargo carrying between 10 percent and 22 percent from current planes, depending on their configuration.
   The airline in 2016 also took delivery of four additional Boeing 787-9 aircraft.