IAG Cargo gets boost from Asia-Pacific demand, oceanfreight congestion

IAG Cargo’s revenue increased by 4.3 percent for the first nine months of 2017, rising to €775 million as the carrier’s total cargo tonne kilometers (CTKs) also rose. Over the third quarter of 2017, cargo revenue increased 7.9 percent year-over-year, to €259 million.

The carrier attributed growth to stronger performance in the Asia-Pacific region after lackluster results in the region during Q3 2016. Lewis Girdwood, IAG Cargo’s CFO, noted that congestion in ocean-going freight between Europe and China is also supporting demand for airfreight.

“This quarter we have continued to see strong growth as demand grew faster than capacity,” Girdwood said. “The upswing in the market over the course of 2017 is encouraging as we approach the peak and year end.”

IAG Cargo’s total tonnes of cargo carried in the first nine months of 2017 fell by 8.3 percent, compared with the same time in 2016, to 498,000 tonnes total. However, CTKs rose 5.9 percent, year-over-year, for the first nine months of 2017, indicating smaller or fewer shipments flying further distances.

For the third quarter of 2017, cargo tonnage was down by a slight 0.6 percent, y-o-y, to 167,000 tonnes, while CTKs fell by 7.7 percent, compared with the same quarter in 2016.