ICELANDAIR Group has recorded an improvement in its cargo operation, with a return to operating profit in the first quarter.
The company stated that it is 'on track' to deliver a full-year operating profit in the division after implementing a number of efficiency measures.
The company's cargo business reported a first-quarter operating profit (ebit) of US$19,000 compared with a loss of $3.8 million for the same period last year.
The cargo business' overall loss for the quarter narrowed to $457,000 compared with $3.6 million during the same period last year.
It reduced freight capacity by 9 per cent as part of this efficiency effort. The company said capacity was consequently 'better aligned' with demand, with flown freighter block hours 35 per cent down on last year.
One of the carrier's freighters has been placed on long-term lease.
As a result of the measures, icelandair Cargo's revenues of $20.7 million for the first three months were down 13 per cent.
Chief executive Bogi Nils said the positive operating figure in February and March demonstrates a 'great turnaround' compared with last year.
Icelandair Group said the cargo business last year was 'difficult' and that - along with leasing out a freighter - it has adjusted the cargo flight schedule and made organizational changes, measures which are 'now starting to pay off', writes London's Air Cargo News.
SeaNews Turkey
The company stated that it is 'on track' to deliver a full-year operating profit in the division after implementing a number of efficiency measures.
The company's cargo business reported a first-quarter operating profit (ebit) of US$19,000 compared with a loss of $3.8 million for the same period last year.
The cargo business' overall loss for the quarter narrowed to $457,000 compared with $3.6 million during the same period last year.
It reduced freight capacity by 9 per cent as part of this efficiency effort. The company said capacity was consequently 'better aligned' with demand, with flown freighter block hours 35 per cent down on last year.
One of the carrier's freighters has been placed on long-term lease.
As a result of the measures, icelandair Cargo's revenues of $20.7 million for the first three months were down 13 per cent.
Chief executive Bogi Nils said the positive operating figure in February and March demonstrates a 'great turnaround' compared with last year.
Icelandair Group said the cargo business last year was 'difficult' and that - along with leasing out a freighter - it has adjusted the cargo flight schedule and made organizational changes, measures which are 'now starting to pay off', writes London's Air Cargo News.
SeaNews Turkey
