IAG Cargo sees revenues fall in Q2

IAG Cargo registered declines in both freight traffic and revenues in the second quarter of the year.

The cargo business saw second-quarter cargo revenues decline by 1.9% year on year to €411m, while traffic was down 5% on last year to 949m cargo tonne km.

The decline in demand reflects overall market conditions as the war in Ukraine and Covid restrictions in China affected manufacturing and supply chains.

Meanwhile, the decline in revenues comes despite air cargo rates hitting new highs.

The revenue decline in the second quarter likely reflects a switch from cargo charter operations to passenger flying as Covid travel restrictions were eased and aircraft were switched away from cargo-only flying.

In the first half, the group operated 395 cargo flights, down from 2,677 from the first six months of 2021, due to the significant increase in the passenger capacity operated.

IAG Cargo said that in the first half of the year it had ramped up capacity between Europe and North America.

Route expansion included opening a new service to Portland from London-Heathrow, and new services into Dallas and Washington from its Madrid hub, while the business also restarted services into Pittsburgh.

IAG Cargo has added eight destinations from its Madrid hub since 2019.

While there were declines in the second quarter, the first half saw cargo revenues increase 9.6% to €843m.

IAG Cargo managing director David Shepherd said: “While there are undoubtedly challenges facing the entire aviation industry, our results today show that our investments in route expansion and digitalisation are paying off.

“The return of global passenger travel is facilitating additional cargo capacity, our pre-pandemic schedules are returning and we are launching new routes for customers.”