Cargo sales boost for BA and Iberia

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International Airlines Group, the new holding company for the merged British Airways and Iberia, saw cargo revenue rise 24.5 per cent to 290m euros in the first quarter.

Cargo volume, measure in cargo tonne kilometres rose by 8.9 per cent to 1,514 million while cargo yield was up 14.3 per cent to 19.15.

Overall the group reduced its operating losses by 57 per cent to 102m euros.

IAG chief executive Willie Walsh said: “We have achieved a significant reduction in our controllable costs, with unit costs excluding fuel down 5.2 per cent. At constant currency rates, unit costs are down 7.6 per cent. The main areas of unit cost reduction are supplier costs and employee costs both down 4.7 per cent.

“The continued focus on cost control has been achieved while we have seen some measured increases in capacity. We have been able to increase capacity without additional aircraft and employees, highlighting the good work that has been done in previous years.

“Fuel costs remain the big challenge facing the industry and we have seen a 31 per cent rise in the quarter. On a unit cost basis, fuel is up 20.1 per cent.”

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