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Cathay Pacific Cargo Hits By 3 % Low in Its Cargo Traffic Ending Nov 2015

One of the world’s foremost international cargo services, Hong Kong based Cathay Pacific Cargo and its sister alliance Dragonair have reported a significant increase in the flight of its passengers worldwide with a dip in its cargo volume in Nov 2015 compared to the same last year. They carried a cargo and mail of 160,120 tonnes in Nov. leading to a 3 percent decline in overall cargo traffic compared to Nov 2014. The combined load fell by 1.4 % points to 67 percent. The capacity declined by 1.2 percent and cargo revenue measured in RTKs (revenue tonne kilometers) was down by 3.2 percent

On the other hand, both airlines saw a positive trend in its passenger load that grew by 4.5 percent points to 84.9 % and the capacity increased by 4.6 %. Towards the quarter ending Nov 2015 they carried a total of 2,778,590 passengers resulting in 8.1 % increase in passenger traffic compared to Nov 2014 and capacity rose by 5.9%. Despite the fact that November is a lean period for carrying passengers, there was a healthy increase in the traffic particularly in the economy class for travel to Europe, North America and other south west Pacific Routes. The routes towards Japan and Taiwan too saw an overload of passenger traffic in the economy cabin while traffic load in premium class over shorter routes remain unaffected. Some longer key routes saw a shortfall in passenger traffic. This variation along with undesirable movement in currency and stiff competition from other carriers has been a major reason in aforementioned haphazard trend in passenger freight.

The overall decline in the air cargo services came as big blow not only to Cathay Pacific as other freight carriers observed a significant decline in cargo volumes too. As per the latest figures from the industry analyst, air freight volumes declined by 0.9% YOY in November worldwide.  The demand for Cathay Pacific cargo fell short of their expectations in November due to excess of capacity in the market while an increase in the tonnage was experienced over the transpacific routes and to and fro from India. This was the primary reason that their Hong Kong cargo terminal experienced the highest monthly cargo load since the time it began operating.