IAG Cargo restructuring sees yield slip, but optimism remains

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IAG Cargo has recorded a 6.7 per cent upswing in freight tonne kilometres for the year ending 2014. Overall yield dropped by some three per cent, but CEO Steve Gunning attribute this to a planned restructuring of the business.

In total, the parent company of British Airways carried 5.4bn FTKs, with a 2.3 per cent increase in available capacity. Commercial revenue for the period, was down 7.5 per cent to €992m.

However, IAG pointed out that adjusting 2013’s figures to reflect a directly comparable freighter operation would result in a 2.4 per cent increase in commercial revenue.

“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,” said Gunning.

“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.”

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