Cathay Cargo to route Europe freighters via India

Cathay Cargo’s freighters to Europe will make technical stops in India this winter, at the new Navi Mumbai International Airport and in Bengaluru. The airline is also adding an Airbus A330P2F converted freighter, on long-term lease from Air Transport Services Group (ATSG), which is expected to start operating by mid-November.

Dominic Perret, Director Cargo, Cathay Cargo, was speaking exclusively to STAT Publishing Group in Miami during The International Air Cargo Association (TIACA) Air Cargo Forum, for the new season of Conversations, presented by AGOS Aviation.

Cathay Cargo has not flown to Dubai or Riyadh since the conflict in the Middle East broke out at the end of February. Dubai had served as the midpoint for five of the carrier’s weekly freighters to Europe, and flying direct would mean “about a 20 percent payload haircut,” Perret said.

Through the summer, those freighters made technical stops in Astana, Kazakhstan. With the weather there getting more difficult in winter, they will now stop in India instead. Perret credited the airline’s India operations team with setting up both routings. The weekly Riyadh freighter has been moved to other markets, including Southeast Asia.

The A330P2F is already in Hong Kong and will add capacity on regional feeder routes to the Chinese mainland, Southeast Asia and India. The lease was announced in June, when Air Hong Kong signed a long-term agreement with ATSG for the aircraft, which is owned by ATSG’s leasing subsidiary, Cargo Aircraft Management (CAM). Air Hong Kong is an all-cargo airline wholly owned by Cathay, and its freighters operate as part of the Cathay Cargo network. The aircraft joins Air Hong Kong’s fleet in the fourth quarter of 2026 to support the growth of Cathay Cargo’s operations.

First A350F due in second half of 2028

Meanwhile, Perret said the first of Cathay Cargo’s Airbus A350 freighters is now expected in the second half of 2028, with the rest following over the next few years. The airline originally ordered six A350Fs with 20 purchase rights. It exercised two of those rights this year, taking firm orders to eight, with 18 purchase rights remaining.

“That increase in the order book from six to eight reflects our confidence in Hong Kong, in air cargo and in Cathay Cargo as well,” he said. The first eight aircraft are meant to grow capacity. Replacements for the six 747-400ERFs, which are 17 to 18 years old, will be considered later. The carrier also operates 14 747-8Fs, which are around 13 years old.

About half of Cathay’s cargo travels in the bellies of passenger aircraft. The airline has 96 passenger aircraft on order, including 35 Boeing 777-9s that are expected to start arriving from next year.

AI cargo boom to run into 2027
Perret, who completes his first year in the role this month after more than 26 years at Cathay, expects the demand for AI and data-centre hardware that has driven growth this year to continue.

“My personal view is I think this boom has got a bit of time to run. So, I expect it to roll over at least into 27 and possibly beyond that as well. That’s the feedback we’re getting from our customers,” he said.

Cargo revenue rose about 23.9 percent in the first half, and tonnage between January and September was up 9 percent year-on-year. He expects a strong fourth quarter. Shipments of server racks, CPUs and GPUs have driven most of the growth, both within Asia and between Asia and North America. Perret said the business is still diversified across e-commerce, pharmaceuticals and perishables, which helps it manage “the ups and downs of the various sectors.” The main challenge this year has been cost, with jet fuel prices staying high.

AI for compliance and self-service
In September, Cathay Cargo launched an import-export control check that uses AI and large language models to help it meet compliance rules across the jurisdictions it serves. Perret said the tool gives much faster feedback and is more accurate at flagging cargo that needs a closer look.

In March, the airline launched Manage My Booking, which lets customers change the flight, change the weight or cancel a booking themselves. It is now looking at agentic AI to answer customer enquiries around the clock. “We really want to give our customers more visibility, more control and more flexibility,” he said.

Greater Bay Area as an import market
Perret said he is “very optimistic” about the Greater Bay Area, where GDP now exceeds US$2 trillion. A growing middle class is making the region an important import market as well as an export base.

With expedited customs clearance, Cathay Cargo’s Air-Land Fresh Lane can get cherries from Chile, grapes from Melbourne or salmon from Norway that land in Hong Kong in the morning into wholesale markets, supermarkets and restaurants across the region that same evening. The carrier also runs three daily flights to Guangzhou and uses ferries from Hong Kong International Airport to Dongguan.

‘Not the biggest but the best’
Cathay Cargo’s new five-year plan aims to make it “the world’s best air cargo carrier, not the biggest but the best.” This year, it was named ATW Cargo Operator of the Year for the fourth time and AirlineRatings.com Cargo Operator of the Year. “Ultimately we’re judged by our customers,” Perret said.

He sees the biggest opportunities for 2027 in Southeast Asia, especially Malaysia, Thailand and Vietnam, as well as India, the Chinese mainland and the lanes to North America.

His message to shippers setting 2027 budgets was about fuel. “I don’t have a crystal ball so I don’t know how long that challenge is going to last,” he said, adding that operations need to stay “sustainable and commercially viable.”