IAG Cargo experiences record quarter as it celebrates its 10th anniversary

posted on 30th July 2021 by Eddie Saunders
IAG Cargo experiences record quarter as it celebrates its 10th anniversary

Today IAG Cargo, the cargo division of International Airlines Group (IAG), reports strong Q2 revenue amid a confident outlook for the cargo business and in-line with an improved air-cargo market.

IAG Cargo achieved revenues of €419 million from April 1 to June 30 2021; an increase of 17.3 per cent at constant currency versus the same period last year.

Overall yield for the quarter was down 32.1 per cent at constant currency versus last year reflecting the increase in market capacity, while sold tonnes more than offset the decline and were up 56.2 per cent.

The Q2 results take IAG Cargo’s half year revenue to €769m, up 25 per cent on the first half of 2020.

Ecommerce continued to be a major driver of activity in the quarter, with the business moving a diverse range of products from fashion and electronics to sporting equipment.

The quarter also saw a very significant increase in the movement of Italian wine into the USA – 95,000 bottles.

In Q2 IAG Cargo, together with the passenger business launched additional joint cargo-passenger flights as some governments eased restrictions.

Activity from Spain to Latin America increased as a result, with additional frequencies to Sao Paolo and Mexico City and a resumption of services into Guayaquil and San Juan.

During the quarter IAG Cargo operated an extensive charter programme on top of its cargo-only schedule.

This included flights operated for charity with British Airways, providing medical equipment and relief into India as the country experienced a rapid rise in COVID-19 cases.

Elizabeth Haun, Chief Financial Officer said: “Q2 was an exciting quarter for IAG Cargo and delivered another set of strong results.

“We celebrated our 10 year anniversary in April and in June partnered with Kuehne+Nagel to source 1.2 million litres of  Sustainable Aviation Fuel, enough to power 16 flights across the Atlantic.

“IAG Cargo charters and cargo-only flights remained sought after in the quarter, and whilst we welcome the return to passenger flying especially out of Spain, we continue to be impacted by passenger restrictions in the UK and Ireland.”