INTERNATIONAL Airlines Group's (IAG) 2024 cargo volumes, measured in cargo tonne kilometres (CTKs), increased 12.6 per cent year on year, but yields, measured as cargo revenue per cargo tonne km, were down 5.2 per cent due to global capacity growth and inflated market yields the previous year.

Cargo revenues climbed 6.7 per cent to EUR1.2 billion (US$1.25 billion) thanks to the volume growth and helped by new systems to improve efficiency and premium products business, reports London's Air Cargo News.

However, yield performance improved and in the fourth quarter was ahead of the same period a year earlier, reflecting rate improvements across the market.

IAG said its yield performance reflected "the substantial growth in global cargo capacity across the industry in 2024 and the inflated market yields in the first half of 2023, which were impacted by the residual effects of supply chain disruptions after the pandemic".

The company added: "However, 2024 benefited from Red Sea disruption, which drove sea-to-air conversion and strong market demand and higher yields from South Asia, India and the Middle East, particularly from the second quarter onwards."

For the fourth quarter of 2024, revenues were EUR364 million, up 25.5 per cent year on year. Meanwhile, fourth-quarter cargo volumes were up 10.7 per cent to 1.4 billion CTK.

"Air cargo achieved strong growth in 2024 with demand surpassing the record volumes of 2021, and our performance is reflective of this," said David Shepherd, chief executive of IAG Cargo.

"External factors are continuing to have an impact on air cargo logistics and consumer behaviour. The industry experienced a two-speed market during the year. In the East, supply chain constraints and geopolitical factors drove yield growth but limited capacity, while conversely, capacity outpaced demand, putting pressure on yields.

"This only emphasises the need for greater efficiency, agility and resilience within the sector, and that is where our efforts and investments were directed last year."