Overview of Cathay Pacific’s Performance in November 2024
Hong Kong-based airline Cathay Pacific has recently released its traffic figures for November 2024, highlighting significant growth in both passenger and cargo sectors. With a 23.1% increase in the number of passengers compared to November 2023, the airline carried a total of 2,010,506 passengers. This growth is complemented by a 25.8% increase in Revenue Passenger Kilometers (RPKs) and a 21.3% increase in Available Seat Kilometers (ASKs), indicating robust expansion in operational capacity and demand.
The airline’s network passenger load factor also saw an improvement, rising by 3 percentage points to 83.5%. This improvement in load factor demonstrates effective capacity management and strong passenger demand. Over the first 11 months of 2024, Cathay Pacific reported a 27% rise in the number of passengers carried, with a total of 20,578,324 passengers.
Key Drivers of Passenger Demand
According to Lavinia Lau, Cathay’s Chief Customer and Commercial Officer, travel demand has been particularly strong on routes to Japan and South Korea. The increase was driven by significant traffic from Hong Kong, as well as from Australia and Southeast Asia. Additionally, Hong Kong has been a favored destination for travelers from Southeast Asia, boosted by school holidays which typically increase leisure travel.
The premium cabins have continued to witness good demand, especially from business travelers returning after the Canton Fair in Guangzhou. The airline also experienced considerable transit traffic through Hong Kong on its Riyadh service, connecting to various regional ports, including the Chinese Mainland.
Cargo Performance in November 2024
Cathay Pacific’s cargo division also reported positive results, with a 15% year-on-year increase in cargo tonnage, totaling 142,601 tonnes. Cargo Revenue Tonne Kilometers (RFTKs) rose by 11.9%, and the cargo load factor increased by 1.2 percentage points to 62.3%. The rise in Available Cargo Tonne Kilometers (AFTKs) by 9.8% year-on-year also indicates a strong expansion in cargo capacity.
The peak season witnessed healthy market momentum, particularly driven by e-commerce sales events from Hong Kong and other cities in the Greater Bay Area. There was a high demand for perishables from the Americas and Southwest Pacific, leading to significant deliveries to Hong Kong and other regional routes in Asia.
Outlook for 2025
Looking ahead to 2025, Cathay Pacific is optimistic about sustaining its growth trajectory and returning to pre-pandemic traffic levels. The airline, along with HK Express, is projected to operate at 100% of pre-pandemic flight levels starting January 2025. This recovery is supported by a substantial increase in the workforce, with about 7,000 new employees recruited in 2024, bringing the total headcount for Cathay Group to over 30,000, including more than 3,400 pilots.
The airline is poised to enhance its global network by adding new destinations such as Cairns, Hyderabad, Dallas, Munich, and Brussels. HK Express is also set to expand, adding routes like Phu Quoc, Hualien, Shizuoka, and Sendai. These expansions are expected to contribute to a strong financial performance in the second half of the year, driven by continued high cargo demand and lower fuel prices, though partially offset by the normalization of passenger yields due to increased flight supply.