IAG Cargo first quarter revenue up US$1.29 million as volume slips 2pc
2012 05 14
- Details
IAG Cargo, the cargo arm of the International Airlines Group (IAG), the holding company of British Airways and Iberia, have recorded a EUR1 million (US$1.29 million) year-on-year revenue growth to EUR291 million in the first quarter, up 0.3 per cent as volumes dropped 2.2 per cent.
Total first quarter revenues from both cargo and passenger services for the whole group were up 7.8 per cent to EUR3.9 billion.
Despite the revenue growth in IAG Cargo, the group suffered an operating loss of EUR249 million in the first quarter compared to the EUR102 million loss one year ago. And loss before tax for the quarter widened to EUR263 million against a loss of EUR47 million in the same period last year.
IAG chief executive Willie Walsh attributed the operating loss to a "EUR281 million, 24.9 per cent rise in fuel costs, the reduced impact of hedging and emissions charges. The Iberia pilot strike cost EUR25 million in this quarter.
"The financial performance of our business continues to be undermined by government actions. In addition to the UK government increasing the world's highest aviation tax - Air Passenger Duty - by double the inflation rate, the Spanish government plans to increase departure taxes from Spain by up to 10 euros per passenger."
IAG completed the purchase of bmi in late April, which now enables British Airways to manage a wider Heathrow slot portfolio, such as launching a new route to Seoul later this year, said Mr Walsh.
"Airports across the UK and beyond have contacted us about starting services and, subject to reaching satisfactory agreement with them, we plan to also launch flights from Heathrow to Leeds-Bradford, Rotterdam and Zagreb and increase frequencies to existing key destinations," he said.
"Consultation continues with bmi [Regional] mainline staff and their trade unions about plans to integrate the business into British Airways.
IAG officials recently agreed to sell bmi Regional, which operates 18 Embraer jets throughout the UK and northern Europe, to Sector Aviation Holdings for GBP8 million (US$12.8 million), according to a report by Atlanta-area Air Cargo World.
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