IAG acknowledges increased road, rail and sea competition

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Saturday, 30 July 2016

IAG Cargo has released its Q2 2016 results, reporting commercial revenue of €UR241 million over the period from 01 April to 30 June 2016, a decrease of 12.0  per cent compared to 2015.

Adjusting the prior year's figures to reflect a directly comparable operation, commercial revenue decreased 12.8 per cent versus last year at constant exchange, it said.

Challenging market conditions continue, on a like for like basis IAG Cargo’s volumes were flat, while yields fell 13.4  per cent at constant exchange.

Commenting on the results Drew Crawley, chief executive at IAG Cargo said: “Trading conditions have become more competitive in 2016.

“Flat demand for consolidated general cargo and excessive freighter capacity in the industry is causing supply to continually outstrip demand.

“These challenges are not solely restricted to air freight, with increasing competition and capacity coming from road, rail and sea freight, exerting significant price pressures. These challenges are not new and despite these conditions, we have grown our revenue share.”