IAG’s Q2 cargo revenue up 1.1%

International Airlines Group today reported 8.3 billion euros ($9.1 billion) in revenue for the second quarter, an increase of 7.8% from the same period last year. Cargo revenue grew 1.1% year over year to $308.8 million. [caption id="attachment_57143453" align="alignright" width="300"] (Courtesy/Bloomberg)[/caption] Like other carriers , International Airlines Group (IAG) is seeing improved cargo figures following a rocky 18 months ruled by high capacity and low demand. IAG saw a 12.4% YoY drop in cargo revenue in Q1 and a 28.4% YoY drop in cargo revenue for full-year 2023. IAG saw Q2 operating profit of $1.4 billion, down 0.8% YoY, according to today’s earnings report. IAG also reported in Q2: 1.2 billion cargo tonne kilometers (CTK), up 15.4% YoY; 162,000 sold cargo tonnes, up 14.1% YoY; and Cargo revenue per CTK of 24 cents, down 12.4% YoY. While cargo volumes were higher than in Q2 2023, cargo yields fell, affected in Q2 this year by the increase in global passenger airline capacity and elevated prices, according to the earnings report. “An increased demand for sea-to-air freight conversion from South Asia and the Middle East helped to partially offset the decline in revenue versus the previous year,” the report stated. By subsidiary airline in Q2: Aer Lingus reported 47 million CTKs, up 20.5% YoY; British Airways reported 921 million CTKs, up 13.6% YoY; Iberia reported 289 million CTKs, up 19.9% YoY; Level reported 11 million CTKs, up 37.5% YoY; and Vueling reported no CTKs in Q2 2024 or Q2 2023. British Airways ranks 28th on Air Cargo Next ’s Freight 50 list of top air cargo carriers, flying 2.9 billion CTKs in 2022. Hawaiian non-passenger revenue up 6.4% Hawaiian Airlines ’ parent company, Hawaiian Holdings , reported $731.9 million in operating revenue in Q2, up 3.5% YoY. Non-passenger revenue, including cargo, rose 6.4% YoY to $65.9 million, according to a July 30 earnings report. [caption id="attachment_74835" align="alignright" width="300"] (Courtesy/Hawaiian Airlines)[/caption] This is an improvement on revenue for non-passenger operations for Hawaiian, which reported a 3.1% YoY decrease in revenue for Q1 and a 16.2% YoY decrease in revenue for full year 2023 . Hawaiian this week reported an adjusted net loss of $71 million, down $46.9 million from Q2 2023. Hawaiian also reported in Q2: An adjusted diluted earnings-per-share loss of $1.37, down 90 cents from Q2 2023; and An adjusted EBITDA loss of $21.3 million, down $32.1 million from Q2 2023. Hawaiian began flying its third A330 freighter for Amazon Air in Q2, according to President and Chief Executive Peter Ingram on the company’s July 30 earnings call. “We’ve had incredibly strong operational performance on the freighter fleet, which we know is important to our customer,” Ingram said. “We will continue to ramp up operations in the months ahead. The plan is to receive four freighters during the remainder of this year and three in the first quarter of 2025 to arrive at the initial fleet of 10. “Getting the freighter fleet up to critical mass is an essential step to allow us to move beyond the investment phase of this line of business and into steady state,” he said. Hawaiian’s partnership with Amazon Air calls for the carrier to operate and maintain a fleet of 10 A330-300 freighters, beginning operations with a single freighter in fall 2023, according to the October 2022 announcement of the deal. Alaska Airlines is moving ahead with its bid to acquire Hawaiian . Alaska and Hawaiian shareholders have approved the $1.9 billion proposal, announced in December, but it still requires regulatory approval. The U.S. Department of Justice and state attorneys general have until Aug. 15 to decide whether to attempt to block the acquisition. Amazon boosts delivery time amid buying behavior changes Amazon posted $148 billion in Q2 net sales, a 10% YoY increase, according to the company’s Aug. 1 earnings report. [caption id="attachment_94510" align="alignright" width="300"] (Courtesy/Amazon)[/caption] The company’s Q2 YoY net sales increase is slightly behind Q1’s YoY increase of 13% and full-year 2023’s YoY increase of 11.8% . Amazon reported in Q2: North American segment sales of $90 billion, up 9% YoY; International segment sales of $31.7 billion, up 7% YoY; Amazon Web Services (AWS) segment sales of $26.3 billion, up 19% YoY; and Net income of $13.5 billion, or $1.26 per diluted share. Amazon President and CEO Andy Jassy said in the earnings report that AWS’ growth is boosted by companies’ modernizing their infrastructures, moving to the cloud and increasingly using AI, all services offered by AWS. Seller fees were lower than expected due to buying behavior changes in which customers are saving their pennies, but Amazon executives believe this will only compress revenue in the short term, Jassy said. “Our continued faster delivery speed is earning us more of our customers' everyday essentials business,” Jassy said. “While consumers are being careful on price, our North America unit growth is meaningfully outpacing our sales growth as our continued work on selection, low prices and delivery is resonating. So far this year, our speed of delivery for Prime customers has been faster than ever before, with more than 5 billion units arriving the same day or next day.” Amazon’s Q3 guidance puts net sales between $154 billion and $158.5 billion, growing between 8% and 11% YoY. Editor’s note: All amounts have been converted to U.S. dollars.

IAG’s Q2 cargo revenue up 1.1%

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