Cargo Facts
SUBSCRIBE
  • NEWS
  • DATA
  • MULTIMEDIA
  • MAGAZINE
    • Issue Archive
    • Weekly Update
  • EVENTS
  • CONSULTING
Saturday, February 27, 2021
Log In
No Result
View All Result
  • Aircraft Leasing
  • Capacity & Demand
  • Carriers
  • E-Commerce
  • Engines
  • Express
  • Freighter Aircraft
  • Freighter Conversions
Cargo Facts
  • NEWS
  • DATA
  • MULTIMEDIA
  • MAGAZINE
    • Issue Archive
    • Weekly Update
  • EVENTS
  • CONSULTING
Log In
No Result
View All Result
Cargo Facts
No Result
View All Result

A tale of two cargo carriers

David Harris by David Harris
March 5, 2013
in News Archives
Share on FacebookShare on TwitterShare on LinkedIn

Air France-KLM and International Airlines Group (parent of British Airways and Iberia) operate their cargo businesses in the same market. But in 2012, they achieved dramatically different results.

As Air France-KLM’s cargo traffic declined over the last two years, the carrier said its focus was on profitability, not market share. However, its 2012 financial and operating data show that far from achieving profitability, AF-KLM’s cargo division reported a 2012 operating loss of €220 million – substantially worse than the €60 million loss in 2011. Cargo revenue was down 2.7% to €3.06 billion, traffic declined 6.3% to 10.6 billion RTKs, and while cargo yield was up 3.0% on a reported basis, it was down 0.9% with favorable exchange rate effects excluded. Air France-KLM says it has undertaken several initiatives that it hopes will cut its cargo operating loss by about half. We analyzed these in an earlier post, but the takeaway from the company’s comments on the subject is that the problem lies not with Air France-KLM, but with the air freight business – that the worldwide economic circumstances are such that it is not really possible for any carrier, particularly no European carrier, to operate profitably.

But is that really the case? Not according to IAG Cargo, the cargo arm of International Airlines Group. In 2012 IAG cargo faced the same cargo market circumstances as Air France-KLM, and in fact did see its traffic fall by 1.2%. But despite the tough market, and despite the well-publicized problems at Iberia, it nonetheless reported cargo revenue up 2.3%, and cargo yield up 3.6%. Following publication of IAG’s 2012 results, our European editor Alex Lennane spoke with IAG Cargo boss Steve Gunning, who said “We had a solid set of results in a difficult market.” He placed much credit for those results on his company’s approach to the business. ““Being a separate division has made a lot of difference, increasingly so. There is a different feel to the business. We have a better share of the voice and more autonomy than we did in the past. We are a young, new company.” You can read the full discussion at Alex’s Loadstar site here but the IAG Cargo story is one of optimism, of the belief that even in tough times it is possible to prosper.

Air France-KLM, on the other hand, almost sounds like it has given up.

 

Previous Post

Stagnation Reigns in the Air Freight Market, New Report Reveals

Next Post

What do we know about January air freight traffic?

Related Posts

ASL 738F
Express

CFC’s Horst on e-commerce-driven EU airport peak

February 26, 2021
GAMECO adds third conversion line for Boeing
Freighter Conversions

GAMECO adds third conversion line for Boeing

February 9, 2021
UPS starts 2021 with record Q4 profits, international volumes
Express

UPS starts 2021 with record Q4 profits, international volumes

February 4, 2021
Next Post

What do we know about January air freight traffic?

Comments 2

  1. garydogden says:
    8 years ago

    Pearls of Cargo optimism, thanks to #IAG … seeing similar at #LCAG Challenges all stakeholders to find something Newer, Better, Faster

    GO.

  2. karlschiller says:
    8 years ago

    …I guess, it’s too easy to coordinate with local, cargolux, the 747-400, 747-8 “dominator” 

    and with FED, the 777C champ!

Leave a Reply Cancel reply

Your email address will not be published.

By subscribing you agree to our Terms of Use and Privacy Policy

Get Latest Issue

CARGO FACTS CONSULTING

ASL 738F

CFC’s Horst on e-commerce-driven EU airport peak

February 26, 2021
CFC: U.S. air trade down 6% in 2020

CFC: U.S. air trade down 6% in 2020

February 19, 2021
  • About Us
  • Help Center
  • Privacy Terms
  • ADA Compliance
  • Advertise

Follow Us

twitter twitter linkedin podcast

© 2021 Royal Media & Cargo Facts

No Result
View All Result
  • News
    • All News
    • Aircraft Leasing
    • Capacity & Demand
    • Carriers
    • E-Commerce
    • Engines
    • Express
    • Freighter Aircraft
    • Freighter Conversions
  • Data
  • Multimedia
  • Magazine
    • Issues Archive
    • Weekly Update
  • Events
  • Consulting
  • Subscribe
  • Log In / Account

© 2021 Royal Media & Cargo Facts

Go to mobile version