IAG cargo revenue falls 12.4%

International Airlines Group today reported 6.4 billion euros ($6.9 billion) in revenue for the first quarter of 2024, an increase of 9.2% from the same period last year. However, cargo revenue fell 12.4% year over year to $283 million. [caption id="attachment_77419" align="alignright" width="300"] (Courtesy/IAG Cargo)[/caption] THE BIG PICTURE: Increased capacity and low demand for cargo continue to impact International Airlines Group’s (IAG) cargo revenue. The increased capacity comes from recovering passenger travel, bringing belly space online. IAG carried 8.6% more passengers in Q1 than in the same period the year before, according to the earnings report. Nevertheless, the air cargo market is showing signs of improvement. While IAG’s cargo revenue fell 12.4% YoY in Q1, it had fallen 27.3% YoY in the previous quarter . This gradual improvement in YoY cargo revenue is in line with other major carriers . Cargo demand is growing industrywide. Global air cargo markets posted double-digit growth in demand in March for the fourth consecutive month, according to March data released this month by IATA . Demand, measured in cargo tonne kilometers (CTK), rose: 10.3% YoY in March; 11.9% YoY in February; 18.4% YoY in January; and 10.8% YoY in December 2023. BY THE NUMBERS: IAG reported an EBITDA of $6.1 billion, up 2.4% YoY. IAG also reported in Q1: 1.2 billion CTKs, up 8.2% YoY; 155,000 sold cargo tonnes, up 2.6% YoY; and Cargo revenue per CTK of 25 cents, down 19% YoY. By subsidiary airline: Aer Lingus reported 40 million CTKs, up 25% YoY; British Airways reported 894 million CTKs, up 6.3% YoY; Iberia reported 275 million CTKs, up 13.6% YoY; Level reported 8 million CTKs, down 20% YoY; and Vueling reported no CTKs in Q1 2024 and Q1 2023. WHAT THEY’RE SAYING: Cargo revenue was impacted by the increase in global passenger airline capacity across the industry and elevated prices in the first three months of 2023, according to the report. “Cargo revenue was down on last year, which was when we were seeing high cargo demand due to the supply chain disruptions in the market,” Chief Financial Officer Nicholas Cadbury said on today’s earnings call. STATE OF PLAY: IAG saw increased demand for sea-to-air cargo conversion from South Asia and the Middle East, which helped offset the YoY decline in cargo revenue, according to the earnings report. Continued attacks by Houthi rebels against ships in the Red Sea have decreased shippers’ confidence in sea transport, turning them to air instead. Air cargo demand from Europe and the Middle East increased 46% YoY in March, largely due to tension in the Middle East, according to airfreight rate analytics platform Xeneta . FLASHBACK: British Airways ranked 28th on Air Cargo Next ’s Freight 50 list of top cargo carriers, having flown 2.9 billion CTKs in 2022. IAG’s other airlines did not make the list. NOTEWORTHY: IAG entered into a sustainable aviation fuel (SAF) purchase agreement in Q1 with Berkeley, Calif.-based eSAF producer Twelve , which will provide eSAF made from CO2, water and renewable energy. ESAF is an SAF produced using power-to-liquid technology. Twelve is contracted to provide 785,000 tonnes of eSAF to IAG over the next 14 years. This is IAG’s largest SAF purchase agreement , according to a Feb. 28 release from the company. “The next-generation fuel will reduce lifecycle greenhouse gas emissions by up to 90% vs. conventional jet fuel,” the release stated. “IAG is the first European airline group to announce an eSAF deal, and the agreement will enable IAG to continue increasing its SAF use, which was approximately 12% of the world’s supply in 2023.” MARKET REACTION: Shares of IAG ( OTCPK: ICAGY ) were down 1.54% from market open to $4.47 as of market close today. IAG has a market capitalization of $11.2 billion. Editor’s note: All amounts have been converted to U.S. dollars. Air Cargo Next has launched a business directory listing cargo carriers, service providers and technology companies. Each category has sub-categories, allowing users to find the right business to meet their needs. Users can also add their businesses to the directory and claim existing entries. Visit the Air Cargo Next Directory here.

IAG cargo revenue falls 12.4%

Sea-to-air conversion from Red Sea attacks gave small bump

Digital Pulse: C.H. Robinson uses AI to respond to emails

MSC takes 1st Italy-registered 777F

Related Posts

Cathay Pacific profit rises as strong demand offsets war, fuel impact

Lufthansa warns of profit risk as jet fuel costs roil sector

Challenge Group’s Zak joins Cargo Facts Symposium 2026

MSC takes 1st Italy-registered 777F

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password