newstodate.aero
Jul 30, 2020 (newstodate): Like many other airlines during the time of pandemic, Icelandair has seen its air cargo business alone in generating revenues in 2020.
According to the Icelandair Group's Interim Financial Statements issued on June 30, 2020, the Group's total transport revenues dropped by 91.5 percent, y-o-y, in Q2/2020.
Not surprisingly, revenues from passenger transportation plummeted by 96,7 percent - while revenues from cargo operations actually increased by two percent during the period.
Last year Icelandair Cargo landed a contract with TNT and FedEx concerning transport of all shipments to and from Iceland.
The three-year contract took effect from early in 2020, boosting the volume of Icelandair Cargo flights between Iceland and Liege, the hub of FedEx and TNT in Europe.
Icelandair Cargo has thus been operating seven weekly rotations between Keflavik and Liege, and three weekly rotations to East Midlands.
Early in 2020, Icelandair expected to fly some 50,000 tonnes of air cargo in 2020, of which about 60 percent on Icelandair's passenger aircraft.
But as the passenger flights were effectively grounded from March 2020, the freighters were alone in lifting cargo until the carrier decided to enter the market for all-cargo passenger flights.
With the first rotation on April 26, 2020, DB Schenker launched a partnership with Icelandair for start of a series of all-cargo flights between China, Europe and the USA, with three of Icelandair's four Boeing 767-300 passenger aircraft converted to cargo purposes for flights from Shanghai to Munich and to Chicago via a stop at Keflavik, Iceland.
But on June 17, 2020, Icelandair Cargo's Mng Dir Gunnar Mar Sigurfinsson told newstodate that "a unique period with all-cargo flights using passenger aircraft is coming to an end, and Icelandair is moving towards more normal times again."
-At least in the European market, the demand for urgent PPE imports from China is easing and as cargo rates are plummeting, these operations are hardly sustainable anymore, Mr Sigurfinnsson said.
-The situation in the US market is different as the status of the Covid-19 is more questionable. So we are still continuing all-cargo flights via Iceland to New York and Toronto as long as the demand is there.
-We are not chasing projects unless we believe they are profitable. So the all-cargo operations have been worth the effort; giving us very acceptable revenues. But most of the costs were on the table anyhow, and in challenging times like these any revenue to balance costs has been valuable for Icelandair as for any other airline.
According to the Icelandair Group's Interim Financial Statements issued on June 30, 2020, the Group's total transport revenues dropped by 91.5 percent, y-o-y, in Q2/2020.
Not surprisingly, revenues from passenger transportation plummeted by 96,7 percent - while revenues from cargo operations actually increased by two percent during the period.
Last year Icelandair Cargo landed a contract with TNT and FedEx concerning transport of all shipments to and from Iceland.
The three-year contract took effect from early in 2020, boosting the volume of Icelandair Cargo flights between Iceland and Liege, the hub of FedEx and TNT in Europe.
Icelandair Cargo has thus been operating seven weekly rotations between Keflavik and Liege, and three weekly rotations to East Midlands.
Early in 2020, Icelandair expected to fly some 50,000 tonnes of air cargo in 2020, of which about 60 percent on Icelandair's passenger aircraft.
But as the passenger flights were effectively grounded from March 2020, the freighters were alone in lifting cargo until the carrier decided to enter the market for all-cargo passenger flights.
With the first rotation on April 26, 2020, DB Schenker launched a partnership with Icelandair for start of a series of all-cargo flights between China, Europe and the USA, with three of Icelandair's four Boeing 767-300 passenger aircraft converted to cargo purposes for flights from Shanghai to Munich and to Chicago via a stop at Keflavik, Iceland.
But on June 17, 2020, Icelandair Cargo's Mng Dir Gunnar Mar Sigurfinsson told newstodate that "a unique period with all-cargo flights using passenger aircraft is coming to an end, and Icelandair is moving towards more normal times again."
-At least in the European market, the demand for urgent PPE imports from China is easing and as cargo rates are plummeting, these operations are hardly sustainable anymore, Mr Sigurfinnsson said.
-The situation in the US market is different as the status of the Covid-19 is more questionable. So we are still continuing all-cargo flights via Iceland to New York and Toronto as long as the demand is there.
-We are not chasing projects unless we believe they are profitable. So the all-cargo operations have been worth the effort; giving us very acceptable revenues. But most of the costs were on the table anyhow, and in challenging times like these any revenue to balance costs has been valuable for Icelandair as for any other airline.