IAG Cargo’s revenue for 2017 rose by 8.0% year-on-year at constant currency to €1.08 billion (US$1.33 billion), according to consolidated results released by International Airlines Group.

Freight tonne kilometres grew by 5.0% to 1.54 billion. Volume was up 5.6%, while capacity grew by 4.8%. Overall yield for the year increased by 2.2% at constant exchange.

“The market improved throughout the year, culminating in a very strong fourth quarter,” said Lynne Embleton, CEO of IAG Cargo. “We handled large volumes across each of our hubs and demand for our premium products was particularly high. Our non-off-loadable Critical product saw sustained growth over the year and was the preferred method of shipment for a huge variety of goods ranging from oil and gas equipment to spices and dried fruit in the run up to the festive period.”

According to IAG, trading conditions were challenging in certain regions but the carrier benefitted from a strong performance in Asia Pacific, following a weak performance last year.

Yield benefitted in the final part of the year as demand in key markets exceeded supply.

The strategic focus continued to be on premium products. IAG Cargo launched Constant Climate Critical in July 2017 for the most urgent, time-sensitive pharmaceutical shipments.

“In parallel with product innovation we have continued our customer focus,” said Embleton. “The launch of FWD.Rewards in May 2017 saw us pioneer a loyalty programme that rewards small and medium-sized freight forwarders through points that are redeemable against flights, hotels and cargo credit. Nine months on from its launch, we have more than 1,000 customers participating in the scheme, which continues to go from strength to strength.”

For the rest of 2018, IAG Cargo’s emphasis on digital, technology and investment for growth will be key as the carrier continues to focus on delivering the best possible service for customers, she added.