Cathay Pacific saw its cargo volume remain largely the same in May this year, compared to its performance in 2021 as the situation in Shanghai continued to affect demand.

The airline carried 92,426 tonnes of cargo last month, a similar level as May 2021, but a 45.1% decrease compared with the same period in 2019.

The Hong Kong-based airline said the month's cargo revenue tonne kilometres (RFTKs) decreased 32.5% year-on-year and were down 59.9% compared to May 2019.

"Regarding cargo, the situation in Shanghai continued to affect demand, although tonnage gradually picked up as Covid-19 restrictions started to ease towards the end of May," said Ronald Lam, chief customer, and commercial officer.

Lam added that for Hong Kong, volumes improved as cross-border feeder services between Shenzhen and Hong Kong allowed for a more stable flow of cargo, although it remains below the capacity available prior to the fifth wave of Covid-19 in Hong Kong.

"Demand from other parts of our network remained relatively strong throughout the month. Overall in May, we operated about 34% of our pre-pandemic cargo flight capacity, while load factor was 75.7%," he added.

For May, Cathay Pacific reported that cargo load factor decreased by 5.3 percentage points to 75.7%, while capacity, measured in available cargo tonne kilometres (AFTKs), was down by 27.7% year-on-year, and was down by 66.1% versus May 2019.

In the first five months of 2022, the tonnage decreased by 4.3% against a 38.9% decrease in capacity and a 41% decrease in RFTKs, as compared to the same period for 2021.

For passenger numbers, the airline said adjustments to the Hong Kong Special Administrative Region Government's travel restrictions and quarantine requirements started to reflect "positive impact" on volumes.

Cathay Pacific carried a total of 57,982 passengers last month, an increase of 141.5% compared to May 2021, but a 98% decrease compared to the pre-pandemic level in May 2019.

It said that in the first five months of 2022, the number of passengers carried increased by 59.1% against a 48.5% decrease in capacity and a 49.3% increase in RPKs, as compared to the same period for 2021.

"Solid" traditional peak season expected for cargo

Moving forward, Cathay expects the recovery in passenger services with the easing of Covid-19 restrictions in the city to also boost its cargo capacity with more flights operated in the second quarter.

Given a "strong underlying cargo performance" coupled with its cost-management measures implemented over the past two years, Cathay said its consolidated losses in the first half of 2022, while substantial, are expected to be lower than the consolidated losses reported in the first half of 2021.

"On the cargo side, we have been able to progressively add long-haul freighter services on both Transpacific and European routes with a full freighter schedule operating from June onwards. This will be further supplemented by increased passenger flight frequencies and cargo-only passenger services to provide additional lift," Lam said.

"With disrupted supply chains in Shanghai and elsewhere in the world, the short-term outlook for our air cargo business remains positive, whilst we currently remain confident for a solid traditional peak season later this year."