IAG Cargo posts €1.23Billion revenue in 2024, driven by strong growth

IAG Cargo, the cargo division of International Airlines Group (IAG), has reported strong financial results for 2024, posting revenues of €1.234 billion, a 6.7% increase compared to 2023. The company also saw a significant 12.6% rise in full-year cargo volumes, measured in cargo tonne-kilometres (CTKs), as global air cargo demand continued to gain momentum. The fourth quarter of 2024 proved particularly strong, with revenues hitting €364 million, a 25.5% increase compared to Q4 2023. This growth reflects both the rising demand for air cargo services and the company’s strategic investments in innovation and operational efficiency.

David Shepherd, CEO of IAG Cargo, acknowledged the dual nature of market conditions that shaped the air cargo sector in 2024.“Air cargo achieved strong growth in 2024, with demand surpassing the record volumes of 2021. However, the industry experienced a two-speed market. In the East, supply chain constraints and geopolitical factors drove yield growth but limited capacity, while in other regions, capacity outpaced demand, putting pressure on yields,” Shepherd stated.

To counter market fluctuations, IAG Cargo focused on enhancing efficiency, agility, and resilience, ensuring its operations remained competitive despite external challenges.

Investment in Innovation and Digital Transformation
In response to evolving market dynamics, IAG Cargo introduced a market-based pricing system in 2024, designed to align its offerings with real-time demand. Additionally, the company implemented an advanced revenue management system to improve forecasting and optimize capacity planning. Key infrastructure investments included a 45% expansion in temperature-controlled cargo capacity at its Madrid perishable facility and the launch of a new operations control centre at London Heathrow, enhancing operational precision.

Surge in Demand for Premium Cargo Products
The surge in demand for premium cargo products played a key role in IAG Cargo’s strong performance. Constant Climate, the company’s temperature-sensitive pharmaceutical transport service, saw a substantial increase in tonnage compared to 2023. Furthermore, there was increased demand for express delivery solutions like Prioritise and Critical, as customers preferred faster and more reliable shipping solutions. Shepherd expressed confidence in the company’s strategic direction, stating:“I am proud of what we achieved in 2024. We made strategic decisions and investments that have built a strong foundation for sustained growth in 2025 and beyond. Our focus remains on prioritising tech investments, digital infrastructure, and exploring new opportunities to deliver greater value and choice for our customers.”

With continued investment in digital infrastructure and a focus on high-value cargo solutions, IAG Cargo is positioning itself for sustained growth in 2025 and beyond, reinforcing its role as a leading player in the global air cargo sector.