Air cargo: IAG Cargo volumes fall 14% as yields jump 21%

Less freight, more money: IAG Cargo loses 14% of volumes but raises revenue

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IAG Cargo carried almost 14% less freight in the third quarter, yet its revenue went up. The reason is a shortage of capacity: with flights to the Middle East suspended and third-party freighters cancelled, the airline group’s cargo arm earned a fifth more per tonne-kilometre, and shippers paid the price.

Quelle: Adobestock / vaalaa

There is a person behind this text – not artificial intelligence. This material was entirely prepared by the editor, using their knowledge and experience.

Key points:

IAG Cargo’s volumes fell 13.9% to 1.1 billion cargo tonne-kilometres in Q3, while revenue rose 3.9% to €294 million.
Revenue per cargo tonne-kilometre jumped 20.7%, as capacity from Asia Pacific and the Middle East shrank.
Lufthansa Cargo, which expanded capacity, tripled its quarterly operating profit to €162 million.

Less cargo, more money

In the three months to 30 September, IAG Cargo, the freight arm of British Airways, Iberia, Aer Lingus and Vueling owner IAG, flew 1,101 million cargo tonne-kilometres (CTK), down from 1,279 million a year earlier. Cargo revenue still rose from €283 million to €294 million, IAG’s results show.

The difference is in the price. Revenue per cargo tonne-kilometre rose 20.7% to 26.7 euro cents. Over the first nine months of the year, volumes were down 12.8% and revenue fell 5.3% to €864 million, but yields were 8.7% higher.

Why the capacity disappeared

IAG gives two reasons. The first is the conflict in the Middle East. Since 28 February, the group’s airlines have suspended flights to Abu Dhabi, Amman, Bahrain, Doha, Dubai and Tel Aviv, and to Jeddah since 24 April. Capacity in the Africa, Middle East and South Asia region fell 19% in the third quarter.

The second is the cancellation of third-party long-haul freighter capacity. IAG Cargo relies mainly on the bellies of the group’s passenger aircraft, topped up with freighters operated by other companies. When those freighters are withdrawn, the volumes go with them, particularly from Asia Pacific.

IAG says it offset part of the loss with cost savings, fuel-related price increases and a focus on premium and higher-yielding shipments. In the third quarter, yields rose across India and Asia Pacific on resilient demand for premium and specialist products.

A different story at Lufthansa

The contrast with Lufthansa Cargo, which operates its own freighter fleet, is stark. In the same quarter, it tripled its operating profit to €162 million, from €49 million a year earlier. Its volumes rose 7%, yields climbed 22% and capacity grew 5%, helped by belly space from ITA Airways.

Both carriers benefited from higher prices. The difference is that Lufthansa had more aircraft to fill, while IAG lost capacity it did not control.

What it means for forwarders

For European forwarders, the IAG figures are a concrete example of how a capacity squeeze shows up on the invoice. Fewer flights from the Gulf and Asia mean less space, and the carriers that still have it can charge more.

The pressure is unlikely to disappear quickly. IAG says the continued conflict has delayed its plans to restore Middle East flying, and it now expects full-year capacity to be slightly lower than in 2025. Meanwhile, IAG Cargo continues to grow its recently launched global joint business with Qatar Airways Cargo and MASkargo.