Volga-Dnepr Group has reported a strong set of financial results for the first six months of 2020.
Total revenue across the three carriers of the Group – Volga-Dnepr Airlines, AirBridgeCargo Airlines and ATRAN Airlines, was more than 40% up which was achieved thanks to a quick response to market situations, the adaptation of strategy towards a new reality and interim changes of the carriers’ business models with a focus on charters’ programmes.
Despite over 18% and 19% drop in the overall market tonnage and FTK (freight tonne-kilometres), respectively, the Group managed to hold on to 5% and 10% decrease. FTK has shown a slight decline given that most of the flights were operated as charters and transported low-density PPE. For the first six months of 2020, the Groups’ share in FTK has demonstrated a 5% increase YOY.
The Group has also increased its tonnage across certain industries, mostly concentrating on COVID-19-related cargo transportations. Within January-June period Volga-Dnepr’s freighters delivered over 25,000 tonnes of PPE, medical beds and mattresses, artificial lung ventilation apparatus, as well as oversized and heavy sterilization vehicles. With biosafety of services being of paramount importance, the Group has additionally invested in disinfection of the fleet and cargo onboard. The antivirus action plan and introduction of new regulations together with a new working schedule have enabled it to meet the current challenges, whereas allocated budget has guaranteed provisions of PPE and regular COVID-19 testing for operations staff, including cockpit personnel.
“E-commerce and pharma shipments have become the biggest growth drivers and have demonstrated almost three and two-and-a-half-fold increase respectively, tipping the point of 30,000 and 35,000 tonnes. The cargo was delivered both through charter and scheduled operations. Industry-wise, we have more than doubled our Oil & Gas operations and reached over 20% surge in Aerospace operations onboard unique ramp freighters – An-124-100/150 and Il-76TD-90VD. Whereas a lot of projects have been frozen following a pandemic, major manufacturers managed to keep their operations. It is also noteworthy that this crisis situation pushed the development of online cargo bookings, not only through our own website channel but also through our partners’ platforms, likes of WebCargo and cargo.one. In our tech-savvy world omnichannel approach is the key to successful customer relations and overall customer experience enhancement,” – pointed out Konstantin Vekshin, Chief Commercial Officer, Volga-Dnepr Group.
“We would like to thank our customers and partners for their support during the tough period at the end of 2019 – the beginning of 2020. Their trust has become the key factor which allowed us to overcome the challenges, introduce necessary changes and feel confident about the Group’s future under new normal”, – added Tatyana Arslanova, Chief Operating Office, Volga-Dnepr Group.