IAG Cargo sees cargo revenues and traffic improve in Q1

IAG Cargo saw both revenues and cargo traffic improve in the first quarter of the year as it benefited from rising demand and higher prices. The IAG cargo division, which operates and sells cargo capacity on British Airways, Iberia, Level and Aer Lingus flights, registered a 7.5% year-on-year increase in cargo tonne km (CTK) to 1.3bn, while revenues improved by the larger amount of 12.4% to €318m on the back of a 4.5% improvement in yield. The company said that cargo traffic reflected overall market trends, while it focused on higher-margin business. "Cargo demand continues to be positively impacted by disruptions to sea freight in the Red Sea; the Group also prioritised premium products and high yielding regions, including Asia Pacific and the Middle East," IAG said in its quarterly results statement. The overall cargo market is estimated by the airline association, IATA, to have grown by 2.4% during the first quarter, although performance between trade lanes has been varied. Two of the trade lanes that IAG Cargo has the most investment in terms of capacity grew the fastest. In March, for example, IATA figures show the Europe-North America corridor led the way with an 8.5% year-on-year increase. Europe-Asia grew by 8.3% year on year. Compared with two of its main European rivals, IAG Cargo was in the middle of the pack in terms of cargo traffic growth. The Air France KLM Group saw cargo revenue tonne km increase by 4.6% in the first quarter, while the Lufthansa Group reported an 8.9% improvement in revenue cargo tonne kms.

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