IAG Cargo, the cargo division of International Airlines Group (IAG), has reported first-half 2025 revenues of €629 million, marking an 11.1% increase year-on-year, as the business continues to show resilience in a dynamic air cargo market.

Volumes rose by 4.5%, while yields increased 6.4% compared with the first half of 2024 – performance which chief executive David Shepherd attributes to customer trust and continued investment in operational and digital transformation.

“Following the strong growth we achieved in 2024, this performance reflects the trust our customers place in IAG Cargo to deliver reliably, even as global supply chains remain under pressure,” said Shepherd. “We have continued to invest in areas that drive long-term value, improving operational performance, modernising key processes, and building a business that is more agile, predictable and responsive to customer needs.”

Digital transformation gains momentum

IAG Cargo’s transformation programme is delivering tangible improvements across its global network. Enhancements include real-time cargo tracking, predictive analytics, and more advanced self-service and pricing tools – all of which support faster, more reliable service delivery and streamlined decision-making.

“We are seeing real momentum from our focus on operational excellence and accelerating our digital offering,” said Shepherd. “It is enabling us to serve our customers better, drive efficiency and move at the pace the market demands.”

Latin America leads growth

One of the strongest contributors to IAG Cargo’s H1 performance was the Latin America-Europe corridor, with tonnage up 19.3% year-on-year. The route’s growth, driven particularly by demand in the perishables sector, underscores the strength of IAG Cargo’s network strategy and customer offering.

The company also reported a 30.5% year-on-year rise in shipments of its Critical product, which caters to high-priority, time-sensitive freight – a further sign of IAG Cargo’s growing reputation for reliability in the premium logistics space.

Partnership with Qatar Airways Cargo and MASkargo

Looking ahead, IAG Cargo continues to prepare for the formal launch of its Global Cargo Joint Business with Qatar Airways Cargo and MASkargo, expected in late 2025 pending regulatory approval.

“This partnership opens a world of new possibilities for our customers,” Shepherd said. “By combining our networks, we will be able to offer greater routing flexibility and expanded capacity across key trade lanes connecting Asia Pacific, the Middle East, Africa, Europe, the Indian Subcontinent, and the Americas.”

In support of global humanitarian efforts, the three carriers have pledged to provide a combined 1,000 tonnes of cargo capacity to the United Nations World Food Programme.

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