IAG Cargo has reported a 14.1 per cent year-on-year increase in commercial revenues at constant currency in the third quarter, to €302 million.
Overall yields for the quarter were up 113.4 per cent on the year-before period at constant currency. This reflected “the extra costs of a flying programme that continues to retain a substantial cargo-only schedule”, IAG said. Sold tonnes were down 42 per cent.
“The stark impact of Covid-19 on aviation continued throughout the third quarter,” commented IAG Cargo’s CEO Lynne Embleton.
“The overall market was weaker than pre-pandemic levels, but the continued squeeze on available air cargo capacity across the global market was the key dynamic in the quarter as carriers continued to ground aircraft.”
Embleton noted that IAG Cargo has focused on creating solutions to ensure goods can continue to be moved around the world.
“Q3 saw a significant ramp up in our network, with routes and frequencies added across the Atlantic, to Africa, Asia and the Middle East. By the end of Q3, we were operating more than 3,000 cargo flights per week and we will further develop our network into Q4.
“This scheduled capacity continues to be supplemented by bespoke charter operations. Whilst the demand for dedicated charters peaked in Q2 – coinciding with the urgent movement of PPE – customers have continued to make use of our charter offering over the last three months.”
Embleton said the company’s yield performance was favourable compared to the year-before period, demonstrating “the distinct shift in supply of market capacity and demand”.
She added: “The prevailing strong yield environment has allowed us to expand services and open markets that had previously been closed. Yield performance was also supported by our product mix.”
The company’s ‘Constant Climate’ cold chain product for transporting temperature sensitive pharmaceutical products saw growth in the quarter, with increased revenues of 22 per cent compared to the year-before period.
“There is a clear energy and determination throughout our business to adapt to the current situation,” concluded Embleton. “A look at what we have carried over the last three months gives a glimpse into what matters. With the international focus on health, we have moved large quantities of PPE, sanitiser and diagnostic kits as well as the usual movement of food and medicines.
“We see an economy that wants to keep moving and we see a desire to continue to make the most of life.”