Referencing 2015’s challenging market conditions, IAG Cargo reported just over €1 billion in cargo revenue for 2015, which was up 3.2 percent year-over-year. Yield was down 4 percent compared to 2014 while capacity was up 3 percent.
“The airfreight industry experienced another challenging year with capacity exceeding demand,” said Willie Walsh, IAG’s CEO. “IAG Cargo continued its focus on strategic partnerships, with an increase in its capacity share agreement with Qatar Airways and a new agreement with Finnair Cargo. Cargo volume measured in tonne kilometers (CTK) decreased 2.9 per cent with a reduction in yield of 3.9 per cent at constant currency. Despite a decrease in CTKs, IAG Cargo grew its volumes in constant climate and prioritized premium products improving its net contribution to the group.”
Net exceptional charges at the operating profit level for the group included property, IT and other items related to the acquisition of Aer Lingus at a cost of €33 million, and British Airway’s €35 million settlement in the 2006 cargo cartel case. After adjusting 2014 figures to reflect a comparable operation, 2015 revenue for the cargo arm of the group including Aer Lingus, decreased 4.6 percent over 2014.
Walsh predicted IAG to generate “an absolute operating profit increase similar to 2015.” Revenue for the first quarter of 2016 appears to be in line with the first quarter of 2015 he said.