Air Partner freight profits rise in steady first half trading
07 / 11 / 2018
Air Partner reports “continued strength in freight” with gross profits up 36% to £1.5m in its results for the first six months of the year to July 31, 2018.
Chief executive Mark Briffa noted that freight, which contributes 8% to group gross profit, “is an especially volatile sector, [so] these results are a great achievement in what we consider a strategic offering that enables us to provide our customers with a full suite of aviation services.”
The company said clients that use its freight services are diverse, from oil & gas companies to charities.
Demand from automotive and aerospace sectors remains strong, both in charter and on board courier products.
The division has also continued to grow its global operations – in 2017, the German office moved to larger premises in Cologne to allow for further growth and 2018 has seen the appointment of a new freight charter sales broker and sales manager.
Elsewhere, this summer saw the opening of a Los Angeles office and the expansion of the freight team into new office space in Fort Lauderdale. The team in Turkey has also increased in size, following significant business growth last year.
"The freight division has achieved this growth in the face of mounting pressure in the market for charter brokers to change tactics to increase their market share by either working directly with shippers or becoming aircraft operators in their own right," the company said.
"Air Partner, however, remains true to its principles by working solely with freight forwarders. This allows the company to remain neutral, focused on finding the best solution for its clients’ requirements and develop long-term loyalty."
He added: “As well as bringing on board new clients through targeted marketing campaigns and successful cross selling with our commercial jets division, we have continued to invest in our teams across regions. We are quickly seeing the benefit of this investment with the experience, customers and opportunities it brings with it.”
The global aviation services group saw total gross profit of £18m, down 1% compared with the same period last year. Gross transaction value of £132.8m was down 2%. It noted that US profit increased across all divisions and that commercial Jets performed well against a tough comparative period, buoyed by strong FIFA World Cup and tour operator flying.
Briffa said: “We are making excellent progress in implementing our long term growth strategy. Our focus is on both organic growth and growth through acquisition. We are benefiting from a growing aviation market, and our broad offering and portfolio approach enable us to cross sell between our divisions and extensive customer base whilst driving internal efficiencies.”