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Cathay Pacific handled 119,963 tons of cargo in September, up 15.3% year-on-year
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It expects more cargo over the next two months due to year-end demand
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More freighter capacity on transpacific routes will be added
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Passenger traffic grew 480.1% in September to 1,542,144
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Revenue passenger kilometers surged by 316% year-on-year, indicating passengers are flying more often and covering longer distances
Cathay Pacific (CX) reported a 15.3% increase in its cargo business and 480.1% surge in passengers traffic in September compared to the same month in 2022.
The airline handled 119,963 tons of cargo in September and expects more over the next two months due to year-end demand. More freighter capacity on transpacific routes will be added to handle the expected demand, it said in a statement.
The cargo revenue ton kilometers (RFTKs) jumped by 16.9% in September.
Although the cargo load factor decreased a bit, the capacity, measured in available cargo tonne kilometers (AFTKs), increased by 26.9% compared to last year.
Over the first nine months of 2023, the airline saw a 20.1% increase in tonnage, with capacity up by 77.7% and RFTKs increasing by 53.8% compared to the same period in 2022.
CX forecasts continued growth in intermodal sea-air feeder services from Dongguan, providing a cost-effective option to move freight from the Greater Bay Area to the Hong Kong hub and beyond.
Passenger business
The airline carried a total of 1,542,144 passengers in September, signifying a significant boost in travel activity.
The increase in revenue passenger kilometers (RPKs) by 316% year-on-year further underscores that passengers are not only flying more frequently but also covering longer distances.
Furthermore, the passenger load factor, which indicates how full the planes were, jumped by 11.2 percentage points to reach 83.7%. The substantial increase in capacity, measured in available seat kilometers (ASKs), which rose by 260.4% year on year, indicates the airline’s commitment to accommodating the growing demand.
The surge in passenger travel was not limited to a single month. In the first three quarters of 2023, the number of passengers carried skyrocketed by 1,099%, exceeding the capacity increase of 546.7% and the RPK increase of 736.8% compared to the same period in 2022. These numbers signify a sustained trend in increased passenger activity.
Lavinia Lau, chief customer and commercial officer, shared insights into the factors contributing to this surge. Lau said, “As we exited the busy peak summer months for passenger travel, we saw increased student traffic in September ahead of the start of the new school year, in particular to the UK [United Kingdom]. To cater for the strong demand, we increased the frequency of our flights between Hong Kong and the UK in September, with our services from Hong Kong achieving load factors of 98%.”
The airline also noticed a significant increase in travelers during the Mid-Autumn Festival and National Day holidays. It saw strong demand from the Greater Bay Area and the rest of mainland China for travel both into Hong Kong and to other destinations.
Additionally, the Asian Games caused an increase in demand for flights to Hangzhou. More conferences and exhibitions in Hong Kong boosted business travel demand as well.
CX plans to keep increasing passenger capacity to give customers more options. It recently restarted the Chicago passenger service to positive response.
CX also announced it gained shareholder approval to buy back 50% (HK$9.75 billion) of the preference shares held by the Hong Kong Special Administrative Region Government by the end of this year, and the remaining 50% by the end of July 2024. This is subject to market conditions and the Group’s business operations at that time.
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