IAG Cargo Q3 revenue up 34 percent on higher capacity

IAG Cargo reported a 34 percent increase in revenue to €405 million for the quarter ended September 30, 2021 on increasing capacity and network.

IAG Cargo capacity increased 24 percent compared to the previous quarter (Q22021) and 62.2 percent compared to Q32020. “The increased activity reflects growing levels of global trade as many economies experience recovery following the COVID-19 pandemic. New routes during the quarter included Nairobi, Istanbul, Male, Chennai, Vienna, Denver and Phoenix whilst many other lanes saw increased frequencies,” an official statement said.

Revenue for nine months increased to €1,174 million, up 28 percent compared to the same time last year. During the nine months, 3,334 cargo-only flights were operated.

IAG Cargo’s hubs in Heathrow, Madrid and Dublin have been pivotal with a significant increase in interline activity, the statement added. “IAG Cargo also increasingly saw conversions from sea freight as shippers turned to air freight to minimise the impact of the well-publicised supply chain disruption.”

David Shepherd, managing director, IAG Cargo, said: “This quarter we have seen momentum build as IAG Cargo, and the global economy, begins to take increasingly confident steps towards a more buoyant future, as recovery from the COVID-19 pandemic continues to gain ground. The team’s resilience and commitment to put our customers first continues, and we are excited to enter into a new and ambitious phase of activity.”

Cargo carried reached 73.4 percent of 2019 levels despite a reduction in cargo-only flights as passenger capacity increased. Only 657 cargo-only flights were operated in the quarter

compared with 1,371 in the second quarter.

Cargo tonne kilometres (CTK million) was up 15 percent to 2,841 in the nine months of 2021 from 2,471 during the nine months of 2020. For Q3, CTK was up 37.2 percent to 988 from 720 in Q32020.

Cargo sold (in tonnes) increased 17 percent for the first nine months of 2021 to 382,000 from 326,000 in nine months of 2020. For Q3, it was up almost 43 percent to 134,000.

Cargo revenue per CTK (€ cents) increased 11.4 percent to 41.32 during the nine months of 2021. It dropped marginally to 40.99 in Q3.

“Yields were higher versus last year reflecting the ongoing market supply and demand imbalance. During this pandemic, cargo revenue has had to cover the entire cost of operating cargo-only flights, without passenger revenue, on aircraft configured for passengers.”

IAG Cargo is the single business unit created following the merger of British Airways World Cargo and Iberia Cargo in April 2011. It was followed by the integration of additional airlines including Aer Lingus, Vueling and BMI.

Parent company International Airlines Group (IAG) has a fleet of 533 aircraft. Before the impact of the Coronavirus pandemic, IAG operated to 279 destinations and carried around 118 million passengers every year.