IAG Cargo recorded declines in revenue and volume during the fourth quarter of 2025 as demand linked to the Red Sea missile crisis continued to ease, contributing to softer yields in the second half of the year.
In Q4, the airline group — which includes British Airways, Iberia, Aer Lingus and Vueling — reported:
• Cargo revenue down 10.4% year over year to €326 million
• Cargo tonne-kilometers (CTK) down 3.2% to 1.4 billion
• Cargo revenue per CTK down 3.2%
For the full year, performance was modestly improved versus 2024:
• Cargo revenue up 0.3% to €1.2 billion
• Traffic up 0.4% to 5.3 billion CTK
• Revenue per CTK down 0.1%
IAG said yields remained buoyant in the first half of 2025, fueled by global supply chain disruptions and strong customer demand, but fell year over year in the second half as the Red Sea-related rate spike normalized.
Despite shifting market dynamics, the group maintained a focus on high-yield and premium routes, delivering growth in key regions Asia Pacific and Africa.
Premium segments drive resilience
IAG Cargo said demand for time-critical services remained strong as customers leaned on trusted partners for high-value and sensitive shipments.
Volumes in Critical — IAG Cargo’s premium priority product — rose 41% year over year, while perishables volumes increased 12%.
Growth was also notable on trade lanes from Latin America into Europe, particularly into Madrid, where volumes rose 22% supported by strong perishables flows.
CEO David Shepherd said IAG ended 2025 with a solid performance in a year shaped by shifting global trade flows and evolving tariff policies. He noted improved capacity planning delivered greater consistency, while continued investment in digital and operational capability strengthened long-term resilience.
Partnerships and operational modernization
Shepherd said the new wide-ranging partnership with Qatar Airways and MASkargo continues to take shape. Most recently, IAG Cargo announced it will provide handling services to Qatar Cargo in Dublin. A similar arrangement was announced for MASkargo at Heathrow in November.
The agreement — subject to regulatory approval — is intended to create “one of the world’s most extensive air cargo networks.”
IAG added it continued to modernize operations in 2025. Investment in digital systems and data tools improved forecasting and planning, enhancing how the business matches capacity with demand. The booking experience was also simplified through a best-price-online commitment and enhancements to online tools and self-service functions aimed at improving visibility, speed and ease of booking.
