IAG Cargo described trading in the first quarter of 2017 as encouraging, although commercial revenue fell 2.1 per cent to €256m at constant exchange.
Volumes were up 3.6 per cent, while capacity grew by 12 per cent. Overall yield for the year was down 5.5 per cent at constant exchange.
Chief financial officer Lewis Girdwood said: “Our Q1 2017 performance has seen an encouraging start to the year. We have seen several sectors of the airfreight market stabilise, with some regional volume growth.
“Increased demand from Asia Pacific and Europe has led to a growth in airfreight volumes between the two regions, driven in part by sea freight constraints. With over 150 flights per week to and from 15 Asian destinations, we are well placed to work closely with our freight forwarding partners to help alleviate this pressure and ensure shippers’ supply chains remain uninterrupted.
“Through the first quarter of the year we saw a 34 per cent rise in volumes from Europe to Asia Pacific when compared to the same period in 2016, with fashion, spare parts, fresh fish and leather goods performing particularly well.
“UK and European markets have also performed well throughout the first quarter of the year, with notable strong North American demand from the perishables and aerospace sectors.
“However, the global airfreight market remains challenging overall, with poor weather conditions in Latin America affecting substantial fresh produce flows and a continued oversupply of capacity in the market, placing pressure on yields.”