IAG Cargo has reported revenue of €843m ($860m) for the first half of 2022, representing a 9.6% increase from the same period last year. The news came as the group published its Q2 results on Friday, showing total revenue of €411m ($420m) for the period April 1st through June 30th, 2022.

For Q1 2022, IAG Cargo reported revenue of €432m ($441m), which was a 23.4% increase from the previous year. While the year-on-year increase for Q2 may not be quite as high as it was for Q1, the results show that despite the return of passenger traffic, cargo operations continue to make a significant contribution to financial performance.

Revenue has been boosted by the group’s ability to expand quickly in response to growing demand, particularly in the automotive, agricultural, and perishables sectors. A prime example is that IAG Cargo's extensive route network to North America has aided the transportation of over 3,000 tons of milk powder, in the midst of a shortage of infant formula in the US.

IAG CARGO
IAG Cargo is today made up of cargo operations from British Airways, Iberia, Vueling, Aer Lingus, and Level. Photo: IAG Cargo

Commenting on the Q2 financial results, IAG Cargo’s managing director, David Shepherd, said,

“While there are undoubtedly challenges facing the entire aviation industry, our results today show that our investments in route expansion and digitalization are paying off. The return of global passenger travel is facilitating additional cargo capacity, our pre-pandemic schedules are returning and we are launching new routes for customers.”

Continued growth for IAG Cargo

IAG Cargo now offers more destinations to North America from London Heathrow than it did prior to the pandemic. Through British Airways, it began operating to Portland in June, and at the same time also resumed services to Pittsburgh for the first time since March 2020.

From Madrid, eight destinations have been added since 2019, including Dallas and Washington. IAG Cargo also has a significant presence in Central and South America, thanks to Iberia’s impressive route network from Madrid.

Iberia A330 Dallas
Iberia recently began operating to Dallas and Washington from Madrid. Photo: Dallas Fort Worth International Airport

Shepherd also went on to celebrate some recent changes in the group’s leadership, stating,

“During the quarter we also strengthened our Executive team with two key appointments, welcoming Caroline Andrews as Chief People Officer and David Walker as Chief Digital and Information Officer, supporting our journey as we continue to transform and invest in our people and our business.”

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Ongoing commitment to sustainability

In addition to route expansion, IAG Cargo continues to make investments in sustainability. The group has recently expanded its sustainable aviation fuel (SAF) partnership with Kuehne+Nagel and Bollore, and over the last year alone, has purchased more than 8 million liters of SAF to help to reduce customer supply chain emissions.

https://www.iagcargo.com/en/press/iag-cargo-reports-another-record-uplift/
The program has a heavy focus on handling cargo at the airport. Photo: IAG Cargo

IAG Cargo was founded in April 2011, following the merger of British Airways World Cargo and Iberia Cargo. Aer Lingus, Vueling, and Level have also since joined the venture, giving IAG Cargo a global network from its three main hubs at London Heathrow, Madrid, and Dublin. Today, the company operates over 15,000 flights per week, and boasts a workforce of over 2,250 people.

What do you think of IAG Cargo’s half year results? Do you expect this increase in revenue to continue over the coming months? Share your thoughts by commenting below