Key Highlights

• Revenue impacted by Middle East disruption: IAG Cargo reported €570 million in revenue for the first half of 2026, down 9.4% year-on-year, as reduced capacity resulting from continued disruption in the Middle East affected cargo volumes.
• Yield performance remains resilient: Despite lower volumes, yield per Cargo Tonne Kilometre (CTK)increased 9.8% year-on-year at constant currency, reflecting disciplined pricing and sustained demand across key trade lanes.
• Global Cargo Joint Business progresses: IAG Cargo advanced the rollout of its Global Cargo Joint Businesswith Qatar Airways Cargo and MASkargo, launching operations across 59 markets while expanding hub handling capabilities in Madrid and Dublin.
• Specialist products drive growth: Demand remained strong for premium logistics services, with Criticalvolumes more than tripling year-on-year, while Prioritise, Secure and Constant Climate also recorded growth.
• Network expansion continues: New cargo services to Monterrey and St. Louis further strengthened IAG Cargo’s network, supporting customers in key manufacturing, automotive, aerospace and nearshoring supply chains.

IAG Cargo Delivers Resilient First-Half Performance Despite Network Challenges

IAG Cargo has reported first-half 2026 revenue of €570 million, demonstrating resilience in a challenging operating environment marked by ongoing disruption across the Middle East and reduced cargo capacity.

The cargo division of International Airlines Group (IAG) recorded revenue of €570 million during the first six months of the year, compared with €629 million in the same period of 2025. Cargo tonne kilometres (CTKs) declined 12.3%year-on-year as capacity across parts of the network remained constrained by the continued impact of geopolitical disruption in the Middle East.

Despite lower volumes, the company maintained strong commercial performance through disciplined pricing strategies and continued investment in network development, strategic partnerships and specialised cargo services.

Pricing Discipline Supports Financial Performance

While operational disruption affected available capacity, IAG Cargo succeeded in improving profitability through stronger yield management.

The company reported a 9.8% increase in yield per Cargo Tonne Kilometre (CTK) at constant currency, reflecting robust pricing discipline despite an unfavourable origin mix caused by network disruption.

Chief Executive Officer David Shepherd said the business remained focused on balancing operational performance with long-term strategic investment.

“Despite continued disruption affecting parts of the network, our focus remained on responding to the needs of our customers, maintaining commercial discipline and investing in the long-term development of the business.”

He added that pricing actions and operational efficiency helped offset lower cargo volumes while strengthening the company’s customer offering through targeted investments and strategic partnerships.

Global Cargo Joint Business Gains Momentum

A major milestone during the first half of the year was the continued rollout of the Global Cargo Joint Businessbetween IAG Cargo, Qatar Airways Cargo and MASkargo.

Operations have now commenced across 59 markets, marking significant progress towards the full implementation of the collaboration, which is expected to provide customers with access to a combined network serving more than 400 destinations worldwide.

To support the initiative, IAG Cargo continued investing in hub infrastructure and handling capabilities.

During the first half of 2026, the company became the Ground Handling Agent (GHA) for Qatar Airways Cargo in Madrid and Dublin, expanding on its existing GHA responsibilities for MASkargo at London Heathrow.

According to Shepherd, these investments will improve operational efficiency and connectivity across the combined network while strengthening the long-term value proposition for customers.

Premium Cargo Products Continue to Grow

Demand for IAG Cargo’s portfolio of specialist logistics products remained strong despite broader market challenges.

The company’s Critical service, designed for urgent and time-sensitive shipments, recorded more than three times the shipment volume achieved during the same period last year.

Meanwhile, Prioritise, IAG Cargo’s premium express product, increased volumes by 4.1%, while Secure, its specialist solution for high-value shipments, recorded 8.1% year-on-year growth.

Temperature-controlled logistics also remained an important growth area.

Demand for Constant Climate, IAG Cargo’s pharmaceutical and temperature-sensitive cargo solution, increased during the first half of the year, driven by stronger exports from the Asia-Pacific region and rising demand for vaccine-related shipments supporting healthcare programmes across West Africa.

Network Expansion Supports Manufacturing Supply Chains

Alongside commercial performance, IAG Cargo continued expanding its global network with the introduction of new services to Monterrey, Mexico, and St. Louis, Missouri.

The addition of St. Louis increased the airline’s US network to 27 cargo destinations, strengthening access to key aerospace and manufacturing supply chains in the American Midwest.

The Monterrey service enhances connectivity to one of Mexico’s largest industrial centres, supporting customers in the automotive, electronics and advanced manufacturing sectors while benefiting from continued nearshoring activity across North America.

The company also expanded its specialist service portfolio with the introduction of a dedicated Aircraft on Ground (AOG) product, complementing its existing Critical service by providing faster logistics support for urgent aviation components and minimising aircraft downtime.

Investing for Long-Term Growth

Despite continued geopolitical disruption and softer cargo volumes, IAG Cargo believes its strategy of combining disciplined commercial management with targeted investment is positioning the business for sustainable long-term growth.

The continued rollout of the Global Cargo Joint Business, expansion of premium logistics services and investment in handling infrastructure reflect the company’s focus on strengthening customer connectivity while building a more resilient and integrated international cargo network.

As global air cargo markets continue to evolve, IAG Cargo is positioning itself to capture future growth opportunities through enhanced collaboration, specialist product innovation and broader network reach.