Volume Up, Revenue Down for Cathay pacific Cargo Services

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The cargo business of Cathay Pacific Airways faced top-line declines just like several other carriers, with a 9% fall of cargo revenue down to US$3.0b resulting from decreasing fuel charges. The company did not bring out any separate operating incoming data for the air freight department they have, but considering the 5.4% rise to 10.58b RTKs in cargo rush of the year and the fuel surcharges being a move through cost, one can estimate a beneficial contribution of cargo to the bottom line of the carrier.

The airline did not release such data but did offer a commentary, extensive and point-by-point, on its several other 2015’s cargo performance aspects. Below given are some highlights of the commentary:

  • Low fuel rates brought benefits to cargo profits for the year 2015.
  • They managed capacity following the demand.
  • Under the passenger aircraft belief, they carried higher proportion i.e. 57% of the total shipments of cargo
  • Hong Kong made strong demands of shipping cargo in 2015’s Q1, but weak after that to the end of the year, however no rise in Europe’s demand in 2015.
  • North America’s demand was better than estimated.
  • Vietnam kept a strong demand of shipments of perishable goods and electronic parts.
  • India kept a major demand of cargo shipments for using in infrastructure projects. A cargo service freighter was introduced last year in March to Kolkata.
  • Two freighter services to North-America every week were added in April last year.
  • The cargo terminal Cathay Pacific at the International Airport of Hong Kong handled 1.7m tonnes cargo for the year 2015, 13% more in comparison to 2014.
  • Also a system of mail scanning as well tracking was introduced in 2015.
  • Though their business is facing several challenges, they are confident in the long-term prospects as well as in the city’s future as one of the best international air freight
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