Virgin Aust thanked for contribution to ‘sister’ Virgin Atlantic’s record result
Cargo Archive Stories #217
Monday, 24 September 2012
VIRGIN Atlantic Cargo has reported a record increase in revenue for the 2011/12 financial year, despite difficult trading conditions.
The seven per cent year-on-year growth to GBP239.6 million was the best-ever financial performance by the cargo division in its 28-year history.
The result was driven by an increase in yield of 12 per cent, with overall tonnage down by five per cent year-on-year. Virgin says performance was strong both in Europe, Middle East and Africa (EMEA) and the Americas, with increases in revenue of 13 per cent and 15 per cent respectively.
However, given the challenging market conditions and lack of a traditional peak season in some Far East markets, revenues from the Asia-Pacific region declined by seven per cent compared to the previous year.
The carrier’s revenue from joint venture partners, notably its partnership with Virgin Australia, continued to perform strongly, up by 25 per cent thanks to significant increases in tonnage and yield. Freight volumes on Virgin Australia’s transpacific operations from the United States to Australia contributed to the performance.
John Lloyd, director of Virgin Atlantic Cargo, said: “What marks this result as particularly significant is that it was achieved in the context of both a marginal decline in our share of capacity and in a year when total market volumes failed to grow. At the root of our second successive year of record cargo revenues was a series of internal initiatives designed to improve our efficiency. A five per cent increase in our yield premium and substantial improvements in our cost base represent the fruits of our efforts.”
Steve Ridgway, chief executive Virgin Atlantic added: “I am extremely proud of the Virgin Atlantic Cargo team for delivering another great contribution to the airline in what is a very difficult and challenging market.”
Virgin Aust thanked for contribution to ‘sister’ Virgin Atlantic’s record result
Cargo Archive Stories #217
Monday, 24 September 2012
VIRGIN Atlantic Cargo has reported a record increase in revenue for the 2011/12 financial year, despite difficult trading conditions.
The seven per cent year-on-year growth to GBP239.6 million was the best-ever financial performance by the cargo division in its 28-year history.
The result was driven by an increase in yield of 12 per cent, with overall tonnage down by five per cent year-on-year. Virgin says performance was strong both in Europe, Middle East and Africa (EMEA) and the Americas, with increases in revenue of 13 per cent and 15 per cent respectively.
However, given the challenging market conditions and lack of a traditional peak season in some Far East markets, revenues from the Asia-Pacific region declined by seven per cent compared to the previous year.
The carrier’s revenue from joint venture partners, notably its partnership with Virgin Australia, continued to perform strongly, up by 25 per cent thanks to significant increases in tonnage and yield. Freight volumes on Virgin Australia’s transpacific operations from the United States to Australia contributed to the performance.
John Lloyd, director of Virgin Atlantic Cargo, said: “What marks this result as particularly significant is that it was achieved in the context of both a marginal decline in our share of capacity and in a year when total market volumes failed to grow. At the root of our second successive year of record cargo revenues was a series of internal initiatives designed to improve our efficiency. A five per cent increase in our yield premium and substantial improvements in our cost base represent the fruits of our efforts.”
Steve Ridgway, chief executive Virgin Atlantic added: “I am extremely proud of the Virgin Atlantic Cargo team for delivering another great contribution to the airline in what is a very difficult and challenging market.”
