IAG Cargo, the cargo division of International Airlines Group (IAG) has reported its financial results for the first half of (H1) 2023. The business reported commercial revenues of €603 million for the period from January 1 to June 30, 2023.
IAG Cargo's H1 2023 revenues represent an increase of 8.5% versus the same period before the pandemic in 2019, a decrease of 28.5% year-on-year. Yields for H1 2023 were below those of H1 2022, tonnage was up 6.5% and 15.3% lower in comparison to H1 2019.
IAG Cargo opened New Premia, its new flagship handling facility at its London hub, in the first part of the year. The investment in excess of €100 million is part of a revamp to its cargo facilities at London's Heathrow Airport. The state-of-the-art 10,000 m2 semi-automated warehouse more than doubles IAG Cargo's handling capacity of premium shipments. The facility features a Constant Climate Quality Centre (CCQC) specialised in pharmaceutical, life-science, and bio-tech product shipping. IAG Cargo continues to invest in its pharmaceutical product reinforcing its commitment to supporting a key industry.
David Shepherd, Chief Executive Officer of IAG Cargo, said: “While the operating environment has changed significantly in recent months, and the air cargo industry normalises following the pandemic, our primary efforts in the first half of the year have been dedicated to implementing essential transformation. This has included investing in our facilities, operations, and senior leadership team to ensure that we are in a strong position to adapt to the changing market. As well as opening our New Premia operation at Heathrow, we have focused on improving operational processes to make better use of our capacity.”
IAG Cargo continued to reintroduce network coverage resuming services between London Beijing and Shanghai as well as increasing frequency to Hong Kong and Japan. H1 2023 saw substantial growth across North America, approaching pre-pandemic levels as IAG Cargo launched a new route between London and Cincinnati increasing its North American network to 28 destinations.
