IATA: Cargo transportation - one of most promising areas for AZAL's profit growth

Cargo transportation is one of the most promising areas for profit growth for Azerbaijan Airlines (AZAL), the International Air Transport Association (IATA) Regional Vice President for Europe Rafael Schwartzman said in an interview with Report.

"There is idle capacity at Baku, and the development of Alat's specialized facilities may free up cargo capacity at Heydar Aliyev International Airport, creating opportunities for AZAL to expand its cargo offerings - or for Baku to attract other international cargo carriers. AZAL currently derives only around 1% of its revenue from cargo, far below industry norms. Expanding cargo operations represents a significant revenue opportunity," he noted.

"Azerbaijan is strategically positioned along the Middle Corridor, an increasingly critical alternative for Europe–China trade. Baku's location and infrastructure offer a strong foundation to capture cargo traffic as global supply chains seek resilience and diversification. There are some interesting developments and opportunities, including Silk Way West's investment in a dedicated greenfield cargo airport in the Alat Free Economic Zone, equipped with modern facilities and capacity to handle up to 1.5 million tons annually by the mid-2020s. This project underscores the cargo potential of Baku when supported by a successful strategy," he added.

Completion of construction is scheduled for the end of 2026, and the airport is scheduled to open in the first quarter of 2027.

Full interview is available here