Cathay Cargo H12024 revenue up marginally on higher tonnage
Traffic measured in RFTKs increased by 4.6% to four billion but yield declined 2.9% to HK$2.68
Cathay Cargo reported a marginal increase (1.5 percent) in revenue at HK$10.9 billion for the first half of 2024 on higher tonnage and traffic.
"Cargo capacity, measured in available cargo tonne kilometres (AFTKs), increased 11.4 percent to 6.8 billion. Traffic, measured in cargo tonne kilometres (RFTKs), increased by 4.6 percent to four billion. Total tonnage increased by 10.4 percent to 719,000 tonnes. Load factor was 59.9 percent compared with 63.8 percent in the first half of 2023, and yield decreased by 2.9 percent to HK$2.68."
Patrick Healy, Chair, Cathay Pacific Group says: "The additional belly space provided by our passenger flights also enabled us to offer more cargo capacity and more choices for our cargo customers, resulting in higher tonnage carried in the first half of 2024 compared with the same period in 2023.
"We were delighted to see that Hong Kong International Airport was named the busiest cargo airport in the world for the 13th time in 14 years in the Airports Council International rankings. As the largest cargo operator at the airport, we are immensely proud to be part of this incredible success story. Our ongoing investments in our fleet, our extensive cargo network, our cargo facilities, and our digital and sustainability capabilities reflect our continued confidence in and commitment to the Hong Kong international aviation and logistics hub."
Other highlights of cargo services in the first half of 2024:
Home market – Hong Kong and Greater Bay Area (GBA)
*Demand was robust in the first half of 2024 with solid support from e-commerce and some traditional commodities, especially electronics. The overall tonnage growth in Hong Kong and the rest of the Greater Bay Area exceeded capacity growth compared with the same period last year.
*Connectivity between the Hong Kong International Airport (HKIA) Logistics Park in Dongguan and HKIA was enhanced with ferry frequencies increasing to 19 sailings per week, up from 12 sailings per week last year.
Other markets
*Primarily driven by the recovery of passenger flights, cargo tonnage grew in the Americas, Europe, Northeast Asia, Southeast Asia, Southwest Pacific, South Asia, the Middle East and Africa.
*"We saw growth in our market share into the GBA as the inbound market for perishables and other consumer items continued to grow."
*Cathay Cargo increased freighter frequency on transpacific routes in March to cater for the quarter-end air cargo peak season.
*Perishables and pharmaceuticals exports from Europe to Hong Kong and other regional destinations was strong.
*E-commerce business was robust, especially from the Chinese Mainland on long-haul routes to the Americas. There was also encouraging growth on machinery movements from Japan, the Taiwan region and South Korea. Mail tonnage also grew significantly on North Asia routes with the increase of passenger flights in the region.
*"We resumed our freighter operations in Ho Chi Minh City with one freighter per week from the summer schedule. Apart from general cargo, perishables and seafood continued to drive the growth from Southeast Asia.
*Perishables such as fresh products and chilled meats comprised a large proportion of the cargo carried from the Southwest Pacific.
*General cargo, dangerous goods, perishables and valuable goods continued to drive the growth from South Asia, the Middle East and Africa.
*"We were operating freighters serving 41 destinations outside Hong Kong as of June 30, 2024."
Cathay group cargo revenue increased marginally (one percent) to HK$12.6 billion while total revenue was up 14 percent at HK$49.6 billion. Profit for the period declined 16 percent to HK$3.6 billion.
