IAG Cargo generated €1.17 billion (US$1.33 billion) in commercial revenue for 2018, a year-on-year increase of 7.2% at constant currency, according to full-year results released by the company.

Overall yield for the year was up 8.1%. Sold tonnes increased by 0.2% compared to 2017 and capacity grew by 3.8%, but cargo tonne kilometres fell 0.9%.

“2018 saw our business delivering record revenues in a market that became more challenging as the year went on,” said Lynne Embleton, CEO of IAG Cargo. “Growth in our Constant Climate and Critical products contributed to a notable year for the business and helped differentiate IAG Cargo’s customer offering. Revenues from our Constant Climate product have increased by 9%, and we have invested in a new multi-million-euro Good Distribution Practice certified Constant Climate Centre in Madrid to help meet growing demand for pharmaceutical shipments, in particular to the South American market. The importance of our Constant Climate service was highlighted in August when we transported over 5.3 tonnes of the diphtheria vaccine to Venezuela to fight an outbreak of the disease.”

The carrier launched a Critical Service Centre in July 2018, offering a specialized service team dedicated to serving customers of the highest-priority, non-offloadable product. Critical consignments, consisting of shipments of products such as aerospace and machinery parts, in-demand retail products and technology components, grew by 35% in 2018.

With the addition of a new British Airways route between London Heathrow and Nashville, IAG Cargo’s network now covers more than 350 destinations. Capacity was added on key routings into Latin America, while Aer Lingus also expanded capacity out of Dublin, carrying pharmaceuticals, beer, as well as automotive and aviation parts.

“We continue to focus on innovation to provide the best customer service and improve how air cargo works,” Embleton said. “IAG Cargo undertook the first airside trial of an autonomous vehicle at a UK airport this year, and as part of the Hangar 51 global innovation programme, we have been working alongside three innovative startups to trial new technologies to improve our operations.”

IAG Cargo has also registered a significant increase in online bookings and has added an in-house web development team which works closely with customers to make monthly improvements to its website.

“2019 looks set to be a more challenging year, with air freight capacity growth outpacing growth in demand,” said Embleton. “Our focus on customer service, products and technology will allow us to continue developing our business as we seek to become the carrier of choice for customers worldwide.”