IAG Cargo revenue increases by 10pc

IAG Cargo increased commercial revenue by 9.6 per cent to €281 million in the second quarter, while yield was up ten per cent at constant exchange.

The company is responsible for the cargo activities of British Airways, Iberia, Aer Lingus, Vueling and bmi.

Despite the increase in revenue, the company said sold tonnes were flat and CTK volumes were down 0.4 per cent. Capacity grew by 3.3 per cent.

Chief executive Lynne Embleton said: “The airfreight market has continued to see relatively strong growth throughout the first half of 2018. Our Q2 performance has been boosted by on-going growth in our premium products and robust regional performance in markets such as Asia Pacific, Europe and North America.

“Our focus is firmly on enhancing customer experience as we make significant investments at both our London and Madrid hubs, including the construction of a new Constant Climate centre in Madrid and the continued development of Premia, our new premium freight facility in London.

“Construction is underway, with steelwork almost complete and the installation of a new material handling system now in progress.

“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. In June, the third Hangar 51 global innovation programme opened with applicants being able to take part in the first ever ‘Cargo specific’ category. We look forward to working with the next generation of technology and logistics companies to find relevant solutions for our business.

“As we enter the second half of 2018, we remain focused on investing in our operation, embracing digital innovations and developing our products and services to enhance how we deliver for our customers.”