IAG Cargo revenues back at 2019 levels in Q2

IAG Cargo saw its cargo revenues decline in the second quarter on the back of lower yields while volumes continued to rise (see table at end).

The airline group reported a 31.9% decline in second-quarter revenues to €280m while traffic increased by 15.8% on last year to 1.1bn cargo tonne km (CTK).

The performance reflected the continuing normalisation of the cargo market following the Covid pandemic, with passenger airlines seeing cargo traffic improve as they resume services and airfreight rates continuing their slow return to 2019 levels.

The group’s revenues for the period were in line with Q2 2019 which stood at €281m. However, CTKs were still 22% down on the same period in 2019 and yields were 27.8% up so there is still some adjustment to go.

David Shepherd, chief executive of IAG Cargo, said: “While the operating environment has changed significantly in recent months, and the air cargo industry normalises following the pandemic, our primary efforts in the first half of the year have been dedicated to implementing essential transformation.”

He also highlighted the opening of a new €100m, 10,000 sq m semi-automated Heathrow warehouse, New Premia, that more than doubles IAG Cargo’s handling capacity of premium shipments.  

“This has included investing in our facilities, operations, and senior leadership team to ensure that we are in a strong position to adapt to the changing market. As well as opening our New Premia operation at Heathrow, we have focused on improving operational processes to make better use of our capacity.”

IAG Cargo also continued to reintroduce network coverage resuming services between London Beijing and Shanghai as well as increasing frequency to Hong Kong and Japan.

There was also growth across North America, approaching pre-pandemic levels, as a new route between London and Cincinnati was added, increasing its North American network to 28 destinations.