IAG Cargo has blamed challenging market conditions for a fall in commercial revenue.
In the second quarter of 2016 commercial revenue was €241m, down 12 per cent on the year before. It said volumes were flat, while yields decreased 13.4 per cent at constant exchange.
CEO Drew Crawley 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.
“We continue to concentrate on the growth of our premium products, strong cost control and precision management of our capacity and yields. Despite the weak demand for general cargo, our premium products are consistently seeing strong tonnage growth and we are further investing in our premium portfolio.