IAG Cargo saw its revenues and volumes decline in the fourth quarter of the year as Red Sea missile crisis-related demand continued to ease.
The airline group, which includes British Airways, Iberia, Aer Lingus and Vueling, saw fourth quarter cargo revenues decline 10.4% year on year to €326m, while cargo tonne kms (CTK) were down 3.2% to 1.4bn and cargo revenues per CTK fell 3.2%.
For the full year, performance was slightly up compared with 2024 as cargo revenues increased 0.3% to €1.2bn, traffic improved by 0.4% to 5.3bn CTK and revenues per CTK was down 0.1%.
“In the first half of 2025, market yields remained buoyant, fuelled by worldwide supply chain disruptions and strong customer demand, but they fell year on year in the second half as the Red-Sea-related rate spike normalised,” the IAG Group said in its annual report.
“Notwithstanding the evolving market trends, the group kept its focus on high-yield and premium routes, delivering growth in key regions Asia Pacific and Africa.”
Drilling down further into performance for the full year, IAG Cargo said in a press release that demand for time-critical services remained strong as customers relied on “trusted partners” for high-value and sensitive shipments.
“Volumes in Critical, IAG Cargo’s premium priority solution, rose by 41% year on year, while perishables volumes increased by 12% over the same period,” the company said.
It added that growth was also notable on trade lanes from Latin America into Europe, particularly into Madrid, where cargo volumes increased by 22%, supported by strong perishables flows.
David Shepherd, chief executive at IAG Cargo, said: “In a year shaped by shifting global trade flows and evolving tariff policies, we ended 2025 with a solid performance.
“Through improved capacity planning, we delivered greater consistency across our network, while continued investment in digital and operational capability strengthened the long-term resilience of the business.
“As a result, we enter 2026 on a firmer footing, with greater near-term stability and clear foundations for sustainable growth.
“At the same time, we are embedding new ways of working that reduce complexity, improving how we serve customers and how we operate day to day. Overall, we are more agile, more responsive, and better equipped to deliver.”
Shepherd said that its new wide-ranging partnership with Qatar Airways and MASkargo was continuing to take shape.
Most recently, the company announced it would be providing handling services to Qatar Cargo in Dublin. A similar deal was announced for MASkargo at Heathrow in November last year.
The agreement is subject to regulatory approval and is intended to create “one of the world’s most extensive air cargo networks”.
IAG Cargo added that it had continued to modernise its operations last year.
“Investment in digital systems and data tools has strengthened forecasting and planning, improving how the business matches capacity with customer demand,” the company said.
“The booking experience has also been simplified with a best price online commitment and enhancements to online tools and self-service functionality that provide greater visibility, speed and ease when arranging shipments.”
