Air, Business, Freight News

Yield rise boosts Virgin Cargo result

[ August 7, 2012   //   ]

Virgin Atlantic Cargo said its revenue for the 2011/12 financial year showed 7% year-on-year growth to £239.6 million, despite the difficult financial conditions – and it was the best-ever financial performance of the cargo division in its 28-year history.

Yields were up 12%, more than offsetting a 5% decline in tonnage.  Performance was strong in the Europe, Middle East and Africa and the Americas regions, each reporting increases in revenue of 13% and 15% respectively – but the challenging market conditions and lack of a traditional peak season in some Far East markets saw revenues from the Asia-Pacific region decline by 7%.

Director of Virgin Atlantic Cargo, John Lloyd, said: “This result was achieved in the context of both a marginal decline in our share of capacity and in a year when total market volumes failed to grow. At the root was a series of internal initiatives designed to improve our efficiency.  A five per cent increase in our yield premium and substantial improvements in our cost base represent the fruits of our efforts and underpin another tremendous result.”