IAG Cargo, which includes the cargo operations of British Airways and Iberia, increased sales by 16.3 per cent to 592m euros in the first half. However, managing director Steve Gunning warned that yield development slowed in the second quarter as market conditions became more sluggish.
First half volume was up 8.3 per cent at 3,066m freight tonne kilometres while cargo capacity for the same period was up 8.6 per cent.
Overall yield (commercial revenue per freight tonne kilometre) increased by 7.3 per cent versus the same period last year, as a result of better market conditions, positive premium volumes and increased fuel surcharges.
IAG Cargo managing director Steve Gunning said: “We continue to integrate customer sales and work towards a seamless customer-facing network. The next six months will also see considerable progress as we merge our products and offer customers improved flexibility and quality services.
“Our first half yields improved, however yield development slowed in the second quarter. Market conditions became more sluggish and were set against a background of significant increases in market capacity. Concerns surrounding the Chinese export market and austerity measures in Europe are being monitored as we assess the risk they represent to both future demand growth and yield. However, as IAG Cargo, we benefit from having a geographically well diversified revenue base and we are cautiously optimistic that our measured capacity increases will put us on a firm footing for the rest of the year.”