Cargo-only PAX flights help IAG Cargo to achieve increased revenues in 2020

IAG Cargo has noted an increase in revenues and yields in its full-year 2020 financial results.

The carrier achieved an 18.5% year-on-year increase in revenues to €1.3bn.

“Cargo helped to make longhaul passenger flights viable,” said Luis Gallego, chief executive of parent company IAG.

Meanwhile, yields climbed 94.6% and sold tonnes of capacity declined 34.9% to 444,000.

“One consequence of the reduction in passenger capacity across the industry was a reduction in hold space available for cargo purposes, leading to reduced overall cargo supply and a more favourable cargo yield environment than in the previous year,” said parent company IAG in its full-year 2020 financial report.

In Q4 2020, IAG Cargo reported a 33.2% year-on-year increase in revenues to €389m.

Sold tonnes of capacity declined 32.6% to 118,000.

“Q4 saw higher demand leading up to Christmas, benefitting from e-commerce, pharmaceuticals and automotive shipments,” the company said.

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Lynne Embleton, chief executive at IAG Cargo, commented: “In 2020, the IAG Cargo team delivered exceptional results amid a challenging economic and capacity environment.

“Our top priority was to maintain a broad network and product proposition for cargo customers despite the pandemic.

“Without a freighter fleet, we adapted our operations and quickly established a comprehensive network of scheduled cargo-only flying using the group’s passenger aircraft. We identified markets most in need of air cargo supply, where the demand could support the yields required to cover the costs of cargo-only-services.

“In March we assembled a charter team to develop dedicated capacity solutions for customers and governments. During the year we operated more than 1,000 charters and removed the seats from five passenger aircraft to create even more capacity for our customers.

She added: “With the international focus on fighting Covid-19, we moved over 20,000 tonnes of PPE in 2020 and large quantities of sanitiser, ventilators and Covid-19 testing kits, alongside our regular movements of food, medicines, high tech and parts for industry.

“Constant Climate, our cold chain service for transporting temperature sensitive pharmaceutical products, performed particularly well with revenue increasing by more than 10% on 2019 and December saw us fly our first doses of Covid-19 vaccines.”