- THE MAGAZINE
IAG Cargo announced its 2013 full year results, reporting commercial revenue (flown revenue plus fuel surcharges) of €1,073 million over the period from January 1 to December 31, 2013, a decrease of 11.8 percent on 2012.
Volumes of 5,653 million cargo ton kilometers (CTKs) for the year represent a decrease of 7 percent on 2012. Overall yield (commercial revenue per CTK) for the year decreased by 5.2 percent versus 2012.
Exchange rate fluctuations, notably the strengthening of the Euro against other currencies, continue to have a significant impact on IAG Cargo revenues and yield. At constant exchange rates, the 2013 yield would be down 2.3 percent.
Steve Gunning, CEO at IAG Cargo, commented, “Market conditions remain challenging due to the global expansion in air cargo capacity and weak demand. 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 bellyholds of our aircraft.”