IAG Cargo’s 2024 cargo volumes increased 12.6% year on year, but yields were down 5.2% due to global capacity growth and inflated market yields the previous year.
International Airlines Group's (IAG) 2024 results document shows cargo volumes, measured in cargo tonne kilometres (CTKs), were 12.6% higher than the previous year.
In comparison, cargo yields, measured as cargo revenue per cargo tonne km, were 5.2% lower than in 2023. Cargo revenues climbed 6.7% to €1.2m thanks to the volume growth and helped by new systems to improve efficiency and premium products business.
However, yield performance improved and in the fourth quarter was ahead of the same period a year earlier, reflecting rate improvements across the market.
IAG said its yield performance reflected "the substantial growth in global cargo capacity across the industry in 2024 and the inflated market yields in the first half of 2023, which were impacted by the residual effects of supply chain disruptions after the pandemic”.
The company added: ”However, 2024 benefited from Red Sea disruption, which drove sea-to-air conversion and strong market demand and higher yields from South Asia, India and the Middle East, particularly from the second quarter onwards.”
For the fourth quarter of 2024, revenues were €364m, up 25.5% year on year. Meanwhile, fourth-quarter cargo volumes were up 10.7% to 1.4bn CTK.
"Air cargo achieved strong growth in 2024 with demand surpassing the record volumes of 2021, and our performance is reflective of this,” said David Shepherd, chief executive of IAG Cargo.
“External factors are continuing to have an impact on air cargo logistics and consumer behaviour. The industry experienced a two-speed market during the year. In the East, supply chain constraints and geopolitical factors drove yield growth but limited capacity, while conversely, capacity outpaced demand, putting pressure on yields.
“This only emphasises the need for greater efficiency, agility and resilience within the sector, and that is where our efforts and investments were directed last year.”
In 2024, IAG Cargo introduced a market-based pricing system "to better align offerings with real-time market dynamics”. A new revenue management system was also implemented to improve forecasting and optimise planning.
Additionally, capacity for temperature-controlled cargo at IAC Cargo’s Madrid perishable facility expanded by 45%, while a new operations control centre at its London Heathrow hub opened to boost control over operations.
Throughout the year, sales of IAG Cargo’s premium products performed well, said the company. Constant Climate, a product designed for temperature-sensitive pharmaceuticals, saw a "significant” rise in tonnage in 2024 compared to 2023. The business also saw more demand for its express products, Prioritise and Critical.
Shepherd further stated: "Our focus remains on prioritising tech investments, digital infrastructure, and exploring new capacity opportunities that complement our network to grow our reach.”
