Virgin Atlantic’s cargo revenue for 2016 fell 15.9% year-on-year to £174 million (US$217 million), according to annual results released by the airline.

The airline transported a total of 218,000 tonnes of cargo during 2016, 1.8% more than 2015 and 2% higher than the year-end contribution target.

Volumes in December were up 5% year-on-year and revenue was 16% above target, but overcapacity, price pressure and the weak pound meant that yield for the year fell by 17.2% compared to 2015.

“2016 was a challenging year for a whole variety of reasons,” said John Lloyd, senior vice president of cargo at Virgin Atlantic. “The impact of overcapacity on yields and the falling value of sterling were major factors and we also saw a reduction in revenues due to route changes driven by passenger demand. The second half of the year was much stronger, particularly for business from the UK, and it ended with a welcome pre-Christmas peak season which resulted in some improvement in average yield. We expect to see some more stability return to the market this year.”

According to Virgin, growth in the pharma and e-commerce business and the trans-Atlantic joint venture with Delta Air Lines resulted in an overall load factor of 64%.

Volumes from the UK to Atlanta, Boston, Chicago, Detroit, Dubai, Los Angeles, New York and San Francisco, and from Atlanta, Boston, Delhi, Detroit, Lagos, Los Angeles, Miami, San Francisco and Washington to the UK showed particularly strong growth.

The airline launched a daily flight between Heathrow and Seattle earlier this month with a Boeing 787-9, as well as flights from Manchester to Boston and San Francisco with Airbus A330-300s. It is also due to launch a weekly flight from Gatwick to Varadero, Cuba, and from Manchester to New York JFK later this year.

Virgin Atlantic took delivery of four 787-9s in 2016 and now has 13 in its fleet, with four more on order. The airline also ordered 12 A350-1000s in 2016 and is scheduled to receive the first frame in early 2019.