IAG Cargo will close its facility at Shannon Airport in Ireland by the end of this year due to a decline in cargo volumes that has made operating the facility "unsustainable".
Opened to handle cargo shipments on flights operated by IAG-owned Aer Lingus, the facility's investment needs are not currently supported by cargo throughput, explained IAG Cargo in a statement.
An IAG Cargo spokesperson said: “IAG Cargo has completed a review of its operation at Shannon airport and has taken a decision to close the facility by the end of 2024. This is because the building requires significant capital investment that is not supported by the level of cargo activity at Shannon airport."
The company said Aer Lingus is the only IAG-owned airline with flights out of Shannon and only "a small number of which carry cargo".
IAG Cargo did not provide specific cargo handling volumes for the facility, but stated cargo volumes have halved in the last few years and the majority of cargo is now being processed at Dublin Airport.
"Cargo volumes at Shannon have declined by half in recent years and unlike other locations, these volumes have not recovered post Covid, making the business model for remaining at this location unsustainable," further stated the spokesperson.
"Every effort was made in the last few years to secure additional cargo business for the Shannon facility both locally and by diverting cargo from other areas, but regretfully it was concluded that the Cargo operation for Ireland could no longer support a dedicated presence in Shannon, particularly in light of the fact that over 95% of all Shannon cargo travels by road to fly in or out of Dublin."
IAG Cargo confirmed it will begin a consultation process with employees affected by the closure of the facility in the next few weeks.
IAG Cargo saw its second-quarter cargo revenues increase by 1.1% compared with last year to €283m. This was the first year-on-year improvement in cargo revenues since the first quarter of 2022.
