IAG Cargo has announced its 2015 full year results, reporting commercial revenue of €1024m over the period from January 1 to December 31, 2015, an increase of 3.2% on 2014. Adjusting the prior year’s figures to reflect a directly comparable operation, commercial revenue decreased 4.6 per cent versus last year.
Market conditions have continued to be challenging and on a like for like[1] basis, overall yield for the year was down 4% on 2014. Volumes remained flat, while capacity grew by 3%.
Drew Crawley, CEO at IAG Cargo, commented: “These are resilient results in the face of challenging market conditions, where excess capacity and reduced demand are leading to significant price and yield pressures. These structural changes to the market further reinforce our strategy of aggressive cost discipline coupled with a focus on growing our premium product offering.
“Despite an initial boost from the West Coast port strike, 2015 was a year where the market forces of supply and demand became increasingly imbalanced. We have exercised strict capacity management where needed and grown our premium products through investing in infrastructure, network and expertise. Our premium product revenue growth is testament to this, with our express product growing 141% in 2015, and our pharmaceutical offering growing by 371%.
“These results show our determination to maximise profitability and our new revenue management system, Optima, allows us to manage our capacity and set price more effectively. It is by enacting sensible commercial policies like this that we are able to reinvest in our products and services. In 2016 we will be making major infrastructure announcements which will deliver next generation facilities and premium product experience for our customers. In addition we will launch key cargo destinations such as Lima, San Juan and, San Jose, California and San Jose, Costa Rica. We will also be completing the full integration of Aer Lingus Cargo, which will open previously unavailable markets and flows for our customers.
“IAG Cargo’s model and clear strategic direction has proven its worth in 2015 and we remain confident that the right strategy is in place for 2016.”
[1] Excluding Aer Lingus, LHF exit impact and at constant FX.
