Virgin Atlantic Cargo strong financial year-start

DESPITE disruption from volcanic ash Virgin Atlantic Cargo's first quarter ending May 31 saw cargo revenue up 36 per cent to GBP52 million (US$82.9 million) a recovery from last year's overall revenue and tonnage decline of 19 per cent and six per cent respectively.

In a Logistics Manager report Virgin Cargo director John Lloyd warned that excess capacity could unbalance recovery despite the carrier's strong result since cost-cutting and capacity rationalisation which saw it make GBP161 million in cargo revenue in 2009/10.

"The challenge now, with capacity rising again in many markets, is to ensure the industry maintains and builds upon this demand by taking sensible decisions on capacity," he said.

Continued demand is expected in the coming financial year following its expansion with V Australia and improvement in volume and yields to and from its markets in the Americas and Caribbean, Africa, India, the UAE, Asia and Australia, said the carrier.
(Source:www.schednet.com)