IAG Q32024 cargo revenue up 16%, tonnage up 8%
For the first nine months of 2024, cargo revenue was flat at €870 million.
International Airlines Group (IAG) reported a 16 percent increase in cargo revenue at €304 million for the third quarter ended September 30, 2024 compared to €263 million in Q32023.
Tonnage sold increased eight percent to 157,000 tonnes and cargo tonne kilometres (CTKs) increased 16 percent to 1.3 billion, says an official release. Cargo revenue per CTK declined marginally to 22.96 cents from 23.11 cents in Q32023.
For the first nine months of 2024, cargo revenue was flat at €870 million compared to €866 million in the same period last year. "Tonnage increased eight percent to 475,000 tonnes and CTKs increased eight percent to 3.8 billion."
Cargo revenue per CTK dropped 11 percent to 22.84 cents from 25.76 cents in the same period last year, the release added. "Red Sea disruption in 2024 drove elevated sea-to-air freight conversion, which increased demand from South Asia and the Middle East, particularly in the second and third quarters. Cargo yields, measured as cargo revenue per cargo tonne kilometre, were 11.3 percent below those of 2023 as a result of the increase in global passenger airline capacity across the industry. Also, prices were elevated in the first nine months of 2023 due to the residual effects of supply chain disruptions in late 2022."
Total group revenue increased eight percent to €9.3 billion in Q32024 and €24 billion for the first nine months of 2024, respectively.
Profit after tax for Q32024 was up 17 percent at €1.4 billion and nine percent up at €2.3 billion for nine months of 2024.
“We achieved a very strong financial performance in Q32024, with a 15.4 percent increase in operating profit compared to the same period last year and improving our margin to 21.6 percent," says Luis Gallego, Chief Executive Officer, IAG. "This is due to the effectiveness of our strategy and Group-wide transformation. We are also delivering on our commitment to provide sustainable returns for shareholders. Demand remains strong across our airlines and we expect a good final quarter of 2024 financially."
IAG has announced a share buyback of €350 million, and expects capital expenditure to be €3.1 billion for 2024 with 20 aircraft to be delivered in the year, including four in the fourth quarter, the release added.
