Cathay Increases Cargo Capacity in February, Leading to Higher Tonnage

Source: Cathay Pacific

Increased Cargo Tonnage in February

In February, Cathay Pacific's cargo tonnage increased due to capacity recovery, with further expansion anticipated in the coming weeks. The airline transported 103,932 metric tons of cargo last month, a 59.6% increase compared to February 2022, when crew quarantine restrictions limited capacity.

Growth in Revenue Tonnes Kilometres

Cargo revenue tonne kilometers (RFTKs) for Cathay increased by 153.9% annually. However, the cargo load factor decreased by 13.7 percentage points to 66.7%, while available cargo tonne kilometers (AFTKs) capacity increased by 206.1% year over year.

Year-to-Date Tonnage and Capacity Increases

Compared to the same period in 2022, the first two months of 2023 saw a 42.8% increase in tonnage, a 201.3% increase in capacity, and a 147.4% increase in RFTKs.

Demand Recovery after Lunar New Year

Lavinia Lau, Chief Customer and Commercial Officer, remarked that February's 9% increase in tonnage over January reflected the gradual recovery of demand after the Lunar New Year holidays. Long-haul routes were helped by ad hoc demand from Southeast Asia, South Asia, the Middle East, and Africa.

E-commerce Traffic Boost and Network Expansion

Demand is rising in Cathay's home markets of Hong Kong and the Chinese mainland, and e-commerce-related traffic is recovering relatively quickly. As more passenger flights resume, the carrier is gradually expanding its network coverage.

Plans for March and Beyond

Cathay Pacific plans to operate approximately 50 percent of its passenger flight capacity prior to the pandemic by the end of March. Lau stated that the airline is making significant progress in expanding capacity and restoring connectivity at the international aviation hub in Hong Kong.

Cargo Revenues in 2022

Due to COVID restrictions affecting operations, Cathay Pacific's cargo revenues decreased by double-digit percentage points in the prior year. The airline reported a 16.6% decline in cargo revenues, along with declines in cargo revenue tonne kilometers (CRTK) and cargo capacity.

Cathay Cargo Rebranding and HKIA Logistics Park Utilization

Cathay Pacific Cargo changed its name to Cathay Cargo in February. Cathay Cargo was the first airline to utilize the Hong Kong International Airport (HKIA) Logistics Park in Dongguan, and Cathay Pacific Services Limited was the first cargo terminal operator. This enables the airline to provide seamless sea-air shipments from the Greater Bay Area (GBA) to HKIA for outbound airfreight.

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