IAG Cargo's Q2 revenues fell due to Middle East conflict, but yields rose as the company focused on premium cargo, according to Air Cargo News.
IAG Cargo reported lower second quarter revenues and traffic due to reduced capacity from the Middle East conflict. However, yields improved through a focus on premium cargo, as reported by London's Air Cargo News.
Cargo revenue for the quarter ended 30 June was GBP295 million, down 5.1 per cent from GBP311 million (US$397 million) a year earlier. Cargo traffic fell 16.9 per cent to 1.1 billion cargo tonne kilometres.
Yields, measured as cargo revenue per tonne kilometre, rose by 14.2 per cent. IAG stated that capacity was impacted from March by cancellations to Middle East destinations, with lower revenues partly offset by operating cost savings and fuel-related price increases.
The carrier emphasized its prioritization of premium and higher-yielding flows, particularly across the Asia Pacific and India, supported by strong demand for specialist products. Additionally, it has advanced the launch of a joint global cargo business with Qatar Airways Cargo and MASkargo.
The joint venture will operate across 59 markets and aims to streamline product offerings, enhance connectivity, reduce transit times, and open new routing opportunities. Once fully launched, customers will gain access to more than 400 destinations worldwide.
IAG Cargo also experienced declines in revenues and traffic in the first quarter, affected by the Middle East conflict, a weaker dollar, and strong comparisons with the previous year.
