Cathay cargo tonnage surge outpaces revenue as yields droop
14 / 03 / 2024
Source: Cathay Cargo
Cathay Pacific Airways carried 1.38 million tonnes of cargo in 2023, up almost 20% on the previous year’s 1.15m tonnes, said the Hong Kong-based carrier when it announced its annual results on 14 March.
Cargo revenue tonne-kilometres surged by over 40%, from 5,774m to 8,099m, but load factors and yields were down – by 8.6 percentage points and 41.3% respectively.
Cathay Cargo’s revenue in 2023 decreased by 17.9% to HK$22.2bn (US2.8bn) compared with 2022. Available cargo tonne kilometres (AFTKs) increased by 59.7%, owing to more belly space being available on expanded passenger flight schedules.
Overall, the airline’s revenue (including passenger) increased by 85% to reach HK$94m (US$ 12m), turning a HK$6.6 billion (US$843m) loss in 2022 to a HK$9.8bn (US$1.23bn) profit in 2023.
Announcing the results, Cathay Group chair Patrick Healy said that the carriers had its first profitable year since 2019, thanks to notable surge in travel demand following three years of pandemic restrictions.
He added that the carrier expected to reach 80% of its pre-pandemic passenger flights by the second quarter of 2024 and was also preparing for the full operation of the Three-Runway System at Hong Kong International Airport by the end of the year, adding: “This milestone marks an exciting new chapter in the growth of our home hub and opens up a wide range of opportunities.”
Chief executive, Ronald Lam, said that the carrier’s cargo business benefited from the increased passenger flight schedule, with more belly space for freight. By the end of 2023, Cathay had restored 85% of its pre-pandemic cargo flight capacity.
He said: “The market normalised compared to the past couple of extraordinary years. However, it remains strong, and we enjoyed a particular bright spot in e-commerce.”
Hong Kong continues to be the world’s busiest international air cargo hub, and Cathay Cargo is its largest operator.
Fleet expansion plans include an order for six Airbus A350F freighters and rights for up to 20 more.
