Photo: IAG Cargo
IAG Cargo recorded a rise in cargo volumes and cargo revenue in the second quarter of 2025, driven by investment in digital infrastructure and service improvement.
The cargo division of International Airlines Group (IAG), which operates and sells cargo capacity on British Airways, Iberia, Level and Aer Lingus flights, said cargo volumes, measured in cargo tonne kilometres (CTKs), were up 1.6% year on year to 1.3bn.
Cargo revenue for the second quarter was €311m, up 9.9% year on year. Cargo yields, measured as cargo revenue per CTK, increased 8.2% to 24.15 cents.
For the first half of the year, cargo volumes increased 4.5% compared to the first half of 2024.
IAG Cargo's revenue increased 11.1% to €629m in the first half of 2025. This was €63m higher than in the same period of 2024. Cargo yields were 6.4% higher for the period.
“Following the strong growth we achieved in 2024, this performance reflects the trust our customers place in IAG Cargo to deliver reliably, even as global supply chains remain under pressure,” said David Shepherd, chief executive of IAG Cargo.
“We have continued to invest in areas that drive long-term value, improving operational performance, modernising key processes, and building a business that is more agile, predictable and responsive to customer needs.”
Speaking about cargo in its interim management report for the six-month period, IAG said: "Despite evolving market conditions impacting global supply chains, market yields remain elevated, and the Group prioritised premium products and high yielding regions, including Asia Pacific and India."
IAG Cargo said its transformation roadmap had continued to drive strong performance, underpinned by strategic investment in digital innovation and service improvement.
Recent developments have included enhancements in responsiveness, optimisation of cargo flow, and strengthening capacity planning.
These include real-time cargo tracking, predictive insights, enhanced self-serve functionality on its website and the integration of agile pricing systems.
"These initiatives are enabling faster decision-making and improved service reliability across its global network and build on the organisation’s commitment made last year to invest in greater agility, efficiency, and resilience amid shifting global dynamics," said IAG Cargo.
“We are seeing real momentum from our focus on operational excellence and accelerating our digital offering,” added Mr Shepherd. “It is enabling us to serve our customers better, drive efficiency and move at the pace the market demands.”
The Latin America - Europe routes continue to be a key growth driver for IAG Cargo, with tonnage up 19.3% in the first half of 2025 compared to the same period last year.
"This performance reflects the strength of IAG Cargo’s network strategy and service offering, enabling the business to meet the rising demand, particularly in the perishable sector. With volumes increasing in both directions, the results reinforce IAG Cargo’s strong position across this important trade lane," said IAG Cargo.
Additionally, shipments of its Critical product, designed for premium, time-sensitive goods, increased by 30.5%.
IAG added that progress continues on the joint global cargo business with Qatar Airways Cargo and MASkargo, announced earlier this year and scheduled to formally launch in late 2025.
