DESPITE an increase in volumes, Air France KLM's cargo revenues declined in the first quarter of the year, reports London's Air Cargo News.
The Franco-Dutch airline noted a 16.5 per cent year-on-year decrease in cargo revenues during the first quarter, amounting to EUR562 million (US$604.7 million). Concurrently, unit revenues per available tonne km (ATK) plummeted 27 per cent.
This revenue setback occurred despite a 3.7 per cent rise in cargo volumes, reaching 217,000 tons (with revenue tonne-km up four per cent to EUR1.6 billion).
Additionally, capacity increased five per cent, while the cargo load factor dipped 0.4 percentage points to 47 per cent.
The revenue decline aligns with the global trend of decreasing air cargo rates, with figures from Xeneta indicating a 22 percent fall in January, 15 per cent in February, and five per cent in March.
The airline attributed the revenue downturn to challenges in implementing a new IT system. Early in March, issues arose with the rollout of this system at its Paris CDG hub, resulting in booking restrictions that were gradually lifted starting from March 18.
It's worth noting that the group's cargo volume growth lagged behind the market average. IATA figures from the first three months of the year show a 13.2 per cent increase in cargo volumes (CTK) compared to the previous year.
Air France KLM explained this disparity, citing higher demand in the air freight industry driven by e-commerce from Asia and disruptions in the Red Sea.