In the first three months of 2014, IAG Cargo saw its commercial revenue fall by 20 million euros, year-over-year, to 250 million euros ($347.54 million).
Despite the decline in revenues, volumes increased to 1.37 billon cargo ton kilometers, a 0.5-percent rise over the first quarter of 2013. With capacity flat for the quarter, yield declined by 3.8 percent, year-over-year.
Steve Gunning, IAG Cargo’s chief executive officer, said the current market situation is forcing the carrier to maintain its “capacity discipline” and to be very judicious about the cargo it flies. He noted that the carrier’s service between London and Austin, which commenced two months ago, is already doing well.
“The Q1 results are consistent with the weak market conditions that continue to prevail,” he said in a statement, adding that business developments that occurred during the quarter could help turn things around.
“IAG Cargo is moving forward with real momentum,” he continued, “and we look ahead to the rest of the year with cautious optimism.”