Cathay Pacific saw another month of cargo decline in July as demand continued to weaken in many of its key markets last month — although it anticipates adding more capacity moving forward with a full freighter schedule in August complemented by regional cargo-only passenger flights and more belly capacity.

The airline carried 100,714 tonnes of cargo last month, a decrease of 17.2% compared to July 2021, and a 40.7% decrease compared with the same period in 2019. 

In June, Cathay carried 104,559 tonnes of cargo, already recording a 4.4% year-on-year decline.

For July, the Hong Kong-based airline said cargo revenue tonne kilometres (RFTKs) decreased 27.5% year-on-year and were down 42.6% compared to July 2019 and cargo load factor decreased by 10.8 percentage points to 71%.

"Cargo demand remained flat in many of our key markets in July as we entered the traditionally quieter summer months for air cargo. Tonnage decreased month on month across most markets, reflecting reduced cargo flight capacity due to weather-related cancellations as well as ongoing operational restrictions which impacted the July schedule," said Ronald Lam, chief customer, and commercial officer.

"The major impact of these challenges was seen on our Indian and the Americas routes, whilst capacity on our European routes grew marginally," Lam added.

For July, Cathay noted that capacity, measured in available cargo tonne kilometres (AFTKs), was also down by 16.4% year-on-year and was down by 48.9% versus July 2019.

In the first seven months of 2022, the tonnage decreased by 6.6% against a 28.3% drop in capacity and a 34.2% decrease in RFTKs, as compared to the same period for 2021.

"Overall, our cargo volumes dipped by about 4% month on the month against an approximately 7% decrease in capacity. We operated 51% of our pre-pandemic cargo flight capacity last month. Meanwhile, the load factor was 71%," the Cathay executive added.

In June, Cathay announced its target to operate 65% of its pre-Covid cargo flight capacity by yearend.

Full freighter schedule in August

"Regarding cargo, we expect to operate a full freighter schedule in August and going forward, complemented by regional cargo-only passenger flights and more belly capacity provided by our additional passenger services. However, long-haul cargo-only passenger flights will be limited," Lam said.

He added that the situation involving cross-border trucking services between Shenzhen and Hong Kong also remains uncertain.

"We are cautiously optimistic about a solid seasonal winter peak season, although this is anticipated to be less pronounced than the one we experienced in 2021 in light of the current global economic environment," Lam further said.

Updating on current market conditions earlier, Cathay Pacific head of cargo sales for Hong Kong and the Greater Bay Area (GBA) Frank Yau said Cathay Pacific Cargo is expecting a muted peak season this year amid global economic uncertainty and cross-border trucking issues closer to home.