IAG Cargo to close Shannon base

IAG Cargo has announced it will close its Shannon base in the coming months.

In a statement today it said it could not justify the expense that would be required to keep it open. “IAG Cargo has completed a review of its operation at Shannon airport and has taken a decision to close the facility by the end of 2024. This is because the building requires significant capital investment that is not supported by the level of cargo activity at Shannon Airport. The company will now enter a consultation process with staff representatives to explore the options.”

It claimed that the level of business at Shannon has declined. “Cargo volumes at Shannon have declined by half in recent years and unlike other locations, these volumes have not recovered post-Covid, making the business model for remaining at this location unsustainable. Every effort was made in the last few years to secure additional cargo business for the Shannon facility both locally and by diverting cargo from other areas, but regretfully it was concluded that the Cargo operation for Ireland could no longer support a dedicated presence in Shannon, particularly in light of the fact that over 95% of all Shannon cargo travels by road to fly in or out of Dublin.”

The company said that it will commence consultation with employees in the coming weeks.

While IAG’s cargo business at Shannon may have been in decline, overall Shannon handles significantly more freight now than pre-pandemic. The airport handled 16,752 tonnes of freight last year, compared to 12,658 in 2019.

On Wednesday a spokesperson for the Shannon Airport Group said, “The Shannon Airport Group acknowledges the announcement by IAG Cargo regarding the closure of their cargo facility at Shannon Airport by the end of 2024. The Aer Lingus cargo facility has been in operation at Shannon Airport since the 1960’s and we will be sorry to see the operation cease.

“Aer Lingus, part of the IAG family, remains a valued and long-standing airline partner of Shannon Airport, and we are committed to continuing our collaborative relationship. Aer Lingus continues to operate a range of passenger services from Shannon Airport – daily transatlantic passenger services to New York JFK and Boston; three times daily services to London Heathrow, and a service to Paris Charles de Gaulle airport. We will work closely with Aer Lingus to explore potential opportunities that may arise in the future, ensuring that our airport continues to be a key hub for both passenger and cargo operations.

“Shannon has a strong cargo operation, and we will continue to work with our other cargo operators at Shannon Airport among these, DHL, UPS and FedEx.

“We remain dedicated to serving our community and supporting the growth and resilience of our regional economy. Our focus is on maintaining the highest levels of service and connectivity for our customers, and we will continue to seek ways to attract new business and investment to our airport.”