Cathay cuts cargo capacity
17 / 05 / 2012
CATHAY Pacific Airways (China) plans to cut its cargo capacity as part of a cost-cutting exercise.
The carrier blamed high fuel prices and poor cargo returns for the move aimed at reducing operating costs to combat the “challenging” economic climate.
“We previously warned that 2012 is looking even more challenging than 2011 and we were therefore cautious about prospects for this year,” reveals Cathay’s chief executive officer, John Slosar.
“In response to the challenging environment we face, we are reducing costs where possible, including through a reduction of capacity.”
Cathay’s original target of seven per cent growth for total freight capacity — freighter and belly hold — has now been slashed to four per cent. The company will also put a freeze on growth of freighter-only capacity.
The airline, which currently operates 25 freighters including five new Boeing 747-8Fs, said it would also phase three 747-400BCFs out of service this year but would still take delivery of three more 747-8Fs this year, and two in 2013.
It also insists funding for its new HK$5.7bn (US$7.3m) cargo terminal at Hong Kong International Airport, due to open early next year, would be unaffected by cutbacks.