IAG Cargo, the cargo division of International Airlines Group (IAG) has published its financial results for 2024. The business reported commercial revenues of €1,234 million for the period from January 1 to December 31, 2024 representing a 6.7 per cent YOY increase.
“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 Officer 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.
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“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,” added Mr Shepherd.
In 2024, the business introduced a market-based pricing system to better align offerings with real-time market dynamics. A new revenue management system was also implemented, enhancing forecasting and optimising planning delivering a better performance for customers. Additionally, capacity for temperature-controlled cargo at its Madrid perishable facility expanded by 45 per cent, while a new operations control centre at its London Heathrow hub opened enhancing operational precision.
“The digital transformation of our systems is ongoing, and it is great to see the impact this is already having not only on efficiencies and processes across the business but also for our customers. With digitisation comes data, and moving forward that will be invaluable for forecasting enabling us to maximise flows and enhance flexibility and efficiency for customers,” remarked Mr Shepherd.
Throughout the year, sales of IAG Cargo’s premium products performed well. Constant Climate, a product designed for temperature-sensitive pharmaceuticals, saw a significant rise in tonnage in 2024 compared to 2023. With consumers expecting faster delivery solutions, the business saw more demand for its express products, Prioritise and Critical.
Mr Shepherd concluded, “I am proud of what we achieved in 2024. We made strategic decisions and investments that have built a strong foundation for sustained growth in 2025 and beyond. These decisions are already delivering greater value and choice for our customers. Our focus remains on prioritising tech investments, digital infrastructure, and exploring new capacity opportunities that complement our network to grow our reach.”
