IAG Cargo reports strong Q1 2021 financial results

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Today IAG Cargo has reported its Q1 financial results with cargo markets still impacted by the pandemic.

Revenues of €350 million were achieved from January 1 to 31 March 2021; an increase of 50% at constant currency versus the same period last year. Overall yield for the quarter was also up 106% at constant currency versus last year, while sold tonnes were down 20.9%.

Following the continued reduction in passenger bellyhold air freight supply due to COVID-19, IAG Cargo reported another strong quarter. Working with the Group’s airlines, IAG Cargo continued to support customers with charter services and a scheduled cargo-only programme.

Charter services supported the automotive and manufacturing sectors as supply chain disruption and increased demand resulted in a need for airfreight capacity. Charters also proved to be a popular solution for e-Commerce customers as consumers continue to favour online shopping.

In March IAG Cargo’s ‘Critical’ service, a premium product for urgent and emergency shipments, experienced its strongest month with its highest ever booking volumes as demand increased for high priority shipments. There was real variety in these critical shipments with movements including ophthalmic instruments, aircraft parts and a generator from Sweden to Jamaica following multiple power outages on the island.

The business also focused on providing additional capacity on priority routes for customers adding wide-body aircraft to short haul European routes that feed into its main hubs of London-Heathrow and Madrid-Barajas and Dublin Airport.

Elizabeth Haun, chief financial officer said: “We have made a strong start to 2021, building on the success of 2020. Through hard work and dedication, our team continued to provide solutions for our customers to keep world trade operating, drawing on an extensive charter offering and our global network.

“We continued to play our part in the fight against COVID-19, transporting PPE and testing kits around the world and in February we were appointed as an airline partner to UNICEF’s Humanitarian Airfreight Initiative, supporting the COVAX facility.

“Importantly, it was a quarter that saw us further diversify our revenue base with more routes, a broader product mix and charters taking us to more new destinations.”