Virgin Atlantic Cargo has announced its financial results for 2014. It reported revenues of £221m for 2014, reflecting another year of resilience in a fluctuating global air cargo market that saw yields decline for the third year in a row.
The company stated that the UK and Europe contributed strong revenue and tonnage gains for the year. Virgin’s UK revenues grew by 6% over 2013, while Europe recorded 5% growth. Overall, Virgin Atlantic carried 224,139 tonnes for the year as a whole, matching its result for last year despite a reduction in capacity due to route and aircraft changes. The airline’s load factor for 2014 stood at 74%.
John Lloyd, Virgin Atlantic’s Director of Cargo said, “When you look at the industry as a whole, our business and share of the market has remained resilient for each of the last five years in what remains a very challenging operating environment. IATA data shows that cargo revenues for the industry were basically unchanged at $62bn in 2014 and are still $5bn below their 2011 peak. Overall, we held our position well last year and achieved a slight increase in our market share thanks to continuing high load factors, which enabled us to make another strong contribution to the airline’s financial results.”
Other highlights for the year included a 16.8% increase in revenues from the carriage of high value cargoes and a 20% growth in cargo generated for Virgin Australia’s long-haul international services to and from Sydney and Brisbane in Australia to Los Angeles, US. Virgin Atlantic has operated as Virgin Australia’s international cargo general sales agent since 2009. Shipments of fish, fresh fruits and other perishables from South Africa to the UK rose 30% year-on-year, while Boston reported the biggest increase in tonnage of the airline’s North American routes, rising 32% over 2013. The airline’s newest transatlantic route from Atlanta, US, which commenced at the end of October, got off to a flying start with a load factor of over 70%, carrying shipments such as pharmaceuticals, diesel engines, fresh fish, fruits and vegetables.
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