IAG Cargo sees demand return to 2019 levels

IAG Cargo saw cargo revenues increase and volumes exceed 2019 levels in the third quarter of the year.

Total cargo revenues for the third quarter stood at €405m, an increase of 34.1% compared with a year ago. Meanwhile, sold cargo tonnes reached 134,000 compared with 94,000 in 2020.

The cargo business said that performance was “aided by growing capacity and the breadth of its network”.

“The quarter’s success has been achieved through a sustained resurgence in the volume of flights offered by IAG Cargo,” the company said.

IAG Cargo reported a 24% increase in capacity on the previous quarter and a 62.2% increase compared to Q3 last year.

“The increased activity reflects growing levels of global trade, as many economies experience recovery following the Covid-19 pandemic,” the company said. “New routes during the quarter included Nairobi, Istanbul, Male, Chennai, Vienna, Denver and Phoenix whilst many other lanes saw increased frequencies.”

IAG Cargo also increasingly saw conversions from sea freight as shippers turned to airfreight to minimise the impact of supply chain disruption. 

IAG Cargo managing director David Shepherd said: “This quarter we have seen momentum build as IAG Cargo, and the global economy, begins to take increasingly confident steps towards a more buoyant future, as recovery from the COVID-19 pandemic continues to gain ground. The team’s resilience and commitment to put our customers first continues, and we are excited to enter into a new and ambitious phase of activity.”

Meanwhile, the overall IAG Group reported a €485m loss for the period, although this is an improvement on the €1.3bn loss for the same period in 2020.

The airline group is hopeful that the easing of restrictions in the US will boost performance in the latter part of the year.