IAG Cargo reports 'resilient results' despite 'challenging' conditions in 2016

IAG Cargo reported (24-Feb-2017) the competitive trading environment of 2015 continued into 2016, with yield decreasing 9.3% year-on-year. Volumes increased 3% and capacity increased 10.5%, partly reflecting the integration of the Aer Lingus network. Following a "robust start" to 2016, demand diminished in 2Q2016 and 3Q2016, leading to yield pressures. The airline reported some improvement in the final peak months, driven by stronger than expected consumer sales in Dec-2016 and high demand for last minute e-commerce products. IAG Cargo CEO Drew Crawley said: "These are resilient results in the face of challenging market conditions. Growing supply from freighter and new generation passenger fleets have continued to outstrip flat demand for general freight. Our focus on aggressive cost management combined with premium product growth has enabled us to offset some yield pressure and grow our revenue share of the market." The carrier will continue to invest in infrastructure and technology in 2017, including digitisation. Mr Crawley said, "We believe digitisation will play a significant role in shaping our industry in the coming years." [more - original PR]