Virgin Atlantic Cargo has published its results for the first half of 2014, in which it saw cargo tonnage rise 1% in the first six months of 2014 to 111,196 tonnes, and a 3% increase in its load factor to 76% network-wide.
The increases were achieved despite a 3% reduction in the airline’s cargo capacity in the six months to the end of June. However, overcapacity in the industry on major routes continued to suppress yields.
John Lloyd, Director of Cargo, said: “In terms of revenue, we are slightly ahead of our target for the year but the level of capacity some airlines are bringing onto the main markets is driving yields down to a level that will be unsustainable for many operators. This needs to be seen as a warning message for the industry.”
Yields in the first half of the year were flat in the Europe, Middle East and Africa region as well as in Asia Pacific. The drive for all-in ULD rates in the American market and increased customer buying power due to excess market capacity meant this was the market most impacted by falling yields.
“We have a good yield position in the market compared to many of our competitors and have done well considering how our network is proportioned with a high percentage of transatlantic operations,” Lloyd added.
Highlights for Virgin Atlantic in the first six months included a 4% increase in tonnage on its flights from the Americas and the consistency of its year-on-year tonnage levels out of Asia Pacific despite a 6% reduction in capacity from the region, largely due to the end of the airline’s Hong Kong-Sydney route in May.
Virgin Atlantic Cargo reports H1 results amid concerns of industry overcapacity
