International Airlines Group (IAG) cargo revenue declined six percent to €566 million for the first half of 2024 compared to €603 million in H12023 on lower rates.
While cargo tonne kilometres (CTK) increased 12 percent to 2.5 billion, revenue per CTK was down 16 percent at €22.78 cents, “impacted by the increase in global passenger airline capacity across the industry and elevated prices in the first six months of 2023,” says an official 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, the release added.
Sold cargo tonnes increased eight percent to 317,000 tonnes for the first half of 2024.
British Airways reported a 10 percent increase in CTK at 1.8 billion and a revenue of €414 million, down eight percent.
“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,” says David Shepherd, Chief Executive Officer, 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.”
Investing in transformationThe commitment to industry-leading standards is highlighted by IAG Cargo joining the IATA Digital Charter and signing up to the One Record protocol in Q2 2024, further streamlining data exchange and transparency within the air cargo supply chain.
“We are committed to leveraging technology to enhance our operations and are actively expanding our IT and digital team to accelerate these initiatives,” adds Shepherd. “Our new pricing system is providing greater agility in offering market-relevant rates to our customers. 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.”
Expanding reach and capacityDuring the first half of the year, IAG Cargo expanded its ground transportation solutions across North America and Europe, providing customers with greater flexibility and access to key gateways such as Madrid, Chicago, Los Angeles, and New York, the release added.
“Further strengthening its commitment to providing best-in-class facilities, IAG Cargo completed a €1.5 million expansion of its temperature-controlled perishables facility in Madrid during the second quarter – enhancing the vital connection between LATAM and Europe for perishable goods. This latest investment is part of a broader €12 million investment in the Spanish hub over the past six years.”
Shepherd adds: “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.”
Total H1 revenue up 8%Total revenue was up eight percent at €14.7 billion and profit after tax was down marginally (two percent) at €905 million.
“We see continuing strong demand for travel in the attractive core markets in which we operate: North Atlantic, Latin America and intra-Europe,” says Luis Gallego, Chief Executive Officer, IAG. “We delivered a good performance in the first half of 2024 with operating profit €49 million ahead of the same period last year.
“We are pleased to announce a return to paying a dividend, which reflects our confidence in the business, our performance and our transformation. We are delivering on our strategy and our commitment to sustainable shareholder returns.”
2024 outlookIAG is expecting strong demand for travel, particularly in core markets of the North Atlantic, Latin America and intra-Europe, and expects to generate significant free cash flow and maintain a strong balance sheet.
