IAG Cargo sees Q2 revenues of €411m after network growth and new US routes

29/07/2022

PRESS RELEASE

· Q2 results take IAG Cargo’s half year revenue to €843m, up 9.6 per cent on the first half of 2021

· IAG Cargo continues to expand its network and from its Madrid hub the business has added 8 destinations since 2019.

29^th July 2022, London: Today, IAG Cargo, the cargo division of IAG (International Airlines Group) reports its financial results for Q2 2022, with revenues of €411 million for the period from April 1 to June 30 2022. The Q2 results take IAG Cargo’s half year revenue to €843m, up 9.6 per cent on the first half of 2021.

IAG Cargo’s Q2 2022 tonnage was up 4.6 per cent whilst overall yield saw a reduction of 2.0 per cent at constant currency versus the same period in 2021, despite the return of passenger led capacity.

The business now offers more destinations into North America from London-Heathrow than pre-pandemic. 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. Globally, IAG Cargo continues to expand its network and from its Madrid hub the business has added 8 destinations since 2019.

The group’s ability to facilitate route expansion has been vital for the global transport of key goods, notably within the automotive, agricultural and perishables sectors. Additionally, since the start of the year lanes into North America have also supported the transportation of over 3,000 tonnes of milk powder as the US grapples with an infant formula shortage.

Commenting on the quarter’s financial results, 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.

“During the quarter we also strengthened our Executive team with two key appointments, welcoming Caroline Andrews as Chief People Officer and David Walker as Chief Digital and Information Officer, supporting our journey as we continue to transform and invest in our people and our business.”

In addition to route expansion, the business continued to make investments in sustainability and digital platforms. In June, IAG Cargo was an early adopter of Freightos WebCargo Pay solution, opening capacity to an even wider audience of SME forwarders. It also expanded its Sustainable Aviation Fuel (SAF) partnerships with Kuehne+Nagel and Bollore, and over the last year, IAG Cargo purchased more than 10 million litres of SAF to reduce customer supply chain emissions on a net lifecycle basis by approximately 24,400 tonnes of CO2.