Cathay Cargo revenue jumps 24% in H1 as AI boom fuel demand

Cathay Cargo reported a strong first-half performance for 2026, with revenue rising 23.9% year-on-year to HK$13.81 billion as sustained demand for cargo capacity, particularly for high-value technology shipments supporting the data centre industry and artificial intelligence boom, drove growth across its network. Cargo volumes increased 8.5% to 869,000 tonnes, while cargo yield climbed 18.1% to HK$3.06 per available freight tonne kilometre, reflecting disciplined capacity management and strong customer demand.

“We delivered both tonnage and revenue growth by leveraging our network strength, working closely with key customers and applying disciplined inventory management,” reads the 2026 Interim Results.

The broader Cathay Group reported a first-half attributable profit of HK$6.24 billion, up 71% year-on-year, on revenues of HK$68.06 billion, supported by strong passenger and cargo demand, improved HK Express performance and stronger contributions from associates. Despite nearly doubling jet fuel costs in the second quarter amid Middle East tensions, the Group increased its interim dividend by 30% to HK$0.26 per share.

Cathay said cargo performance reflected sustained demand for capacity across key trade lanes, with growth supported by its global network, close collaboration with customers and disciplined inventory management. The airline noted that demand for transporting high-value technology products linked to data centre expansion and AI applications was a major driver of results during the period.

Operationally, Cathay Cargo expanded available freight tonne kilometres (AFTKs) by 4% to 7.63 billion, while revenue freight tonne kilometres (RFTKs) increased 4.9% to 4.51 billion. Cargo load factor improved to 59.2% from 58.6% a year earlier, and cargo carried rose from 801,000 tonnes to 869,000 tonnes.

Across its network, Cathay Cargo operated more than 90 return freighter flights each week to over 40 destinations while also utilising belly capacity on passenger services to more than 100 destinations worldwide. During the first half, it increased transpacific freighter frequencies ahead of peak demand, reinstated weekly freighter services to Bangkok after a decade, added capacity on the Amsterdam-Paris route, and recorded strong demand for specialist products including Cathay Pharma, Cathay Secure, Cathay Priority and Cathay Fresh. Freight operations to Dubai and Riyadh, however, remained suspended from March because of the Middle East situation.

Cathay said it remains cautiously optimistic about the cargo peak season and plans to add freighter services on trunk routes in line with expected demand while further expanding capacity through additional Air Hong Kong freighter operations, although it continues to monitor geopolitical developments and elevated fuel prices.