IAG Cargo has registered a year-on-year improvement in cargo revenues for the first time since the first quarter of 2022.
The cargo business of the IAG Group saw its second-quarter cargo revenues increase by 1.1% compared with last year to €283m.
Since 2022 the air cargo market has been affected by the impact of returning passenger capacity and stagnant demand.
The market picked up over the final few months of last year, but this has only been on certain trade lanes and overall rates did not start to improve until the second quarter of this year.
Second-quarter cargo traffic at IAG improved by 15.4% to 1.3bn cargo tonne kms and tonnages were up 14.1% to 162,000.
While revenues for the second quarter were up, over the first six months there was a decline.
“Cargo yields, measured as cargo revenue per cargo tonne kilometre, were 16.0% below those of 2023, impacted by the increase in global passenger airline capacity across the industry and elevated prices in the first six months of 2023,” the IAG Group said in a results release.
“An increased demand for sea-to-air freight conversion from South Asia and the Middle East helped to partially offset the decline in revenue versus the previous year.”
Half-year tonnage was up 7.8% compared with last year.
“We achieved solid results with year-on-year volume growth in a global market characterised by less supply chain constraint than we experienced last year,” said David Shepherd, chief executive of IAG Cargo.
“This positive momentum is a testament to our strategic investments across our business, which are already delivering substantial value, choice and flexibility for our customers.”
In a press release, the cargo division highlighted the investments it has made over the first six months of the year.
IAG Cargo expanded its ground transportation solutions across North America and Europe to provide better access to key gateways such as Madrid, Chicago, Los Angeles, and New York.
It also completed a €1.5m expansion of its temperature-controlled perishables facility in Madrid during the second quarter, which is part of a broader €12m investment in the Spanish hub over the past six years.
“Our investments in digital capabilities, network reach, state-of-the-art facilities, and most importantly, our people, are laying the foundation for sustained growth and a stronger future for IAG Cargo,” said Shepherd.
IAG Cargo also joined the IATA Digital Charter and signed up to the One Record protocol in the second quarter and made other digital investments.
“Our new pricing system is providing greater agility in offering market-relevant rates to our customers, while the implementation of a cutting-edge AI-powered camera solution at our London Heathrow hub is optimising efficiency in cargo loading planning and ultimately improving customer CiQ quality,” he added.
