Cathay Pacific will closely monitor the effects of recent geopolitical developments and ongoing trade tensions on its cargo performance this year while maintaining optimism about the business, bolstered by strong results in 2024.

The cargo arm of the Hong Kong flag carrier reported that overall cargo tonnage was 11% higher, and yield was about 3% higher than in 2023.

"Cathay Cargo performed very well in 2024, especially in the second half of the year, with strong e-commerce demand being a key driver," the Cathay Group said in announcing its results.

Ronald Lam, Cathay's chief executive officer, added that the airline's "strong" cargo performance was in part due to the additional belly space provided by increased passenger flights, which enabled it to carry more cargo.

Overall cargo capacity in available freight tonne-km (AFTK) increased by 8.6%. Traffic, measured in revenue freight tonne kilometres (RFTKs), increased by 5.0%.

Total tonnage increased by 10.9% to 1.5 million tonnes. The load factor was 59.9% compared with 62.0% in 2023, and the yield increased by 2.9%.

Lam said the recently commissioned Three-Runway System at Hong Kong International Airport, which is now in operation, will pave the way for an exciting new era for the Hong Kong international aviation hub and for the Cathay Group. 

Looking ahead, Lam noted that 2025 and beyond "will not be without headwinds," adding that trade conflicts as they develop could pose challenges to Cathay Cargo.

"For Cathay Cargo, given the global geopolitical situation, we are cautiously monitoring any short-term impacts on air cargo demand," he said.

"Nevertheless, we remain confident in the competitiveness of our air cargo business, bolstered by the opportunities presented by the Three-Runway System and the strength and flexibility of our business model," Lam added.

The Cathay chief noted that these trade-related supply chain challenges would continue to affect the entire aviation industry, impacting many airlines, including the Cathay Group.

"Regardless, we will not compromise on the safety and quality of our operations," he said.