United Kingdom-based IAG Cargo today, released its financial results for Q2 2018, cargo revenue increased 3.7 percent to €281 million during the three-month period.
Revenue growth outpaced cargo volume growth, increasing 0.4 percent year-over-year in Q2, to 1,414 tonnes – symptomatic of the carrier’s strength in 2017, which has made for more difficult annual comparisons in 2018.
The carrier does not break out detailed financials for its cargo unit, but reported year-to-date (YTD) revenues up 3.5 percent, to €557 million on volumes up 0.5 percent during the same period.
Higher revenues, however, do not necessarily mean improved profitability, which is dependent on costs. The carrier said that employee and fuel costs increased during Q2, but noted reductions to engineering and other aircraft costs, which decreased by 11.3 percent.
IAG Cargo said its Asia Pacific, Europe and North America channels are performing well. Its continues construction of sites in London and Madrid, which include “Premia,” a pharma and express shipments London and the “Constant Climate” facility for pharmaceuticals in Madrid. “Construction is underway, with steelwork almost complete and the installation of a new material handling system now in progress,” CEO Lynne Embleton said of the London facility.
IAG Group’s overall Q2 operating profit before exceptional items rose 17.4 percent to €1,1 billion. Looking forward, Embleton said, “There continues to be huge scope for digital to transform the airfreight industry and we know that to continue to innovate, we must look both inside and outside the industry.” The company stated that at current fuel prices and exchange rates, IAG expects its operating profit to increase in 2018.