International Consolidated Airlines Group (IAG) has made a profit of 1.5 billion euros ($1.6 billion) with cargo revenue increasing despite volumes falling.

IAG Cargo’s revenue increased by 3.2 per cent from 992 million euros in 2014 to one billion euros in 2015. Cargo handled fell by 2.6 per cent from 897,000 tonnes to 874,000 tonnes. In the fourth quarter, cargo revenue increased by 4.9 per cent from 268 million euros to 281 million euros while tonnage remained at 236,000 tonnes. The group says cargo has been challenging, with capacity has exceeded demand, but it will continue to focus on strategic partnerships including its share agreement with Qatar Airways and Finnair Cargo.

IAG chief executive officer, Willie Walsh says: “These results are in line with our recent target and have exceeded our original 2015 operating profit target of 1.5 billion euros that we set in 2011.”

“It’s undoubtedly been a good year but it’s also been challenging with extreme volatility in the currency and fuel markets. The benefits gained from lower fuel prices have been partially offset by the stronger US dollar.”