IAG Cargo has shared its first quarterly results for this year, revealing that cargo demand is as high as ever. IAG's cargo division posted revenues of €432 million ($455 million), a 23.4% increase compared to 2021.
IAG Cargo continues growth
After a record year in 2021, IAG Cargo has maintained its strong performance with a promising start to 2022. The cargo division's quarterly results reveal revenues of €432 million ($455 million) for the period from January 1st to March 31st.
IAG Cargo, Managing Director David Shepherd, said,
"IAG Cargo has had another busy quarter. The global economy is increasingly moving on from the confines of the COVID-19 pandemic. Trade and confidence are clearly increasing."
Q1 2022 revenues represent an increase of 23.4% from Q1 2021, with sold tonnage up by 19% on the same period last year.
IAG Cargo noted exceptional growth in demand for its 'Constant Fresh' perishable goods freight services, with revenues growing by 47%.
The group also resumed freight operations to Australia after nearly two years away, deploying a Boeing 787-9 Dreamliner that will stop in Singapore along the way.
Industrial goods and e-commerce also thrive
One key trend over the COVID-19 pandemic was the rise of e-commerce cargo demand, something that has continued through 2022.
David Shepherd,
"At IAG Cargo we are seeing trends that first emerged during the pandemic continue to drive growth, with e-commerce as a stand-out example."
Additionally, the group saw demand remain high for industrial goods and cargo ordinarily transported by sea due to disruptions in the shipping industry.
According to IAG Cargo,
"Demand was particularly high between Europe and the USA for key industrial goods, including automotive parts, with IAG Cargo increasing the availability of widebody aircraft on European feeder lanes into Heathrow."
As Simple Flying reported, the group has had some fascinating cargo assignments so far this year. IAG Cargo flew eight tonnes of champagne to the Maldives in the run-up to Valentine's Day and also transported over 500 tonnes of flowers around the world over the same period.
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Passenger growth favorable to cargo
Belly-dependent IAG Cargo said that a resurgence in passenger aviation has worked in its favor, providing more opportunities and capacity for freight transportation.
IAG Cargo said,
"The return to more widespread passenger flying has also provided a boost to cargo, with new routes opening up and capacity on important trade lanes increasing."
IAG Cargo broke several of its records in 2021, including most cargo on an Airbus A350-1000 (48.5 tonnes) and a Boeing 777-300 (53.8 tonnes).
The group also contributed over 125 tonnes of capacity in humanitarian aid shipments to Ukraine, transporting essentials including blankets, kitchen equipment and medical supplies into the region.
Do you think IAG Cargo will see its growth continue over 2022? Let us know your insights in the comments.