Cathay Pacific reported a decline in cargo volumes for the first half of the year due to capacity constraints as its passenger planes largely remain grounded, although cargo revenue during the period was up.

Patrick Healy, Cathay Pacific chairman, said cargo volumes decreased in the January to June period declined by 31.9% to 667,000 tonnes.

Cargo revenue increased 8.8% year-on-year to HK$11,177 million in the first half due to a market imbalance between capacity and demand, Healy said, as available freight tonne-kilometres (AFTKs) decreased 31%, reflecting a considerable loss of capacity due to cuts to Cathay's passenger schedule.

Load factor in the six-month period increased 5.9pp to 69.3% and cargo yield increased 44.1% to HK$2.71.

Cargo-only flights

Healy said the airline introduced additional cargo capacity "wherever possible" and increased the utilisation of freighter aircraft.

The carrier operated 2,228 pairs of cargo-only services with passenger aircraft between March and June 2020.

Cathay Pacific also commenced transporting cargo in the passenger cabins of its Boeing 777-300ER aircraft in late April 2020. The airline group also chartered services from its subsidiary Air Hong Kong.

'No meaningful recovery' 

Healy said Cathay Pacific Group does not expect to see a "meaningful recovery" in its passenger business for some time to come, adding "we will continue to closely monitor market demand as we work towards progressively reintroducing passenger flights as appropriate".

As previously reported, Cathay's management has said it will recommend to the board the optimum size and share of the group to meet the air travel needs of Hong Kong while meeting its responsibilities to its shareholders by the fourth quarter of this year.