Overview of Passenger and Cargo Growth
In May 2024, Cathay Pacific continued to show substantial progress in its recovery trajectory, marked by significant growth in both passenger and cargo transport. During the first five months of 2024, the airline, together with its subsidiary HK Express, successfully carried over 11.2 million passengers. Specifically, in May, Cathay Pacific transported 1,678,532 passengers, which represents an 18.4% increase compared to May 2023. The growth in revenue passenger kilometers (RPKs) was even more impressive, posting a 20.8% rise year-over-year.
Despite the increase in passenger numbers, the passenger load factor saw a slight decline of 4.8 percentage points, settling at 80.3%. This dip can be attributed to the expansion of the fleet and an increase in available seat kilometers (ASKs) by 28% compared to the previous year.
Cargo Operations Performance
Cathay Pacific’s cargo division also demonstrated robust performance with a 10.2% increase in tonnage carried compared to May 2023, totaling 121,088 tons. However, the cargo load factor slightly decreased by 2.1 percentage points to 59.4%. The available cargo ton kilometers (AFTKs) increased by 7.5% year-on-year. The growth in cargo operations was particularly supported by strong demand from Hong Kong and the Greater Bay Area, with significant contributions from the transport of high-end electronics, seafood, and consumer products.
Regional and Long-Haul Travel Trends
May 2024 saw a mixed performance in terms of regional and long-haul routes. Lavinia Lau, Cathay Pacific’s Chief Customer and Commercial Officer, noted a 4% decrease in passenger numbers from April due to the lack of long weekend holidays in Hong Kong. However, the demand was buoyed by increased travel from Southeast Asian countries due to school holidays. The long-haul routes, particularly to North America, saw high load factors of 90% driven by the return of student traffic to Hong Kong and the Chinese Mainland.
Strategic Directions and Future Outlook
As part of its strategic expansion, Cathay Pacific has added new destinations to its global network in 2024, including Chennai, Colombo, and Barcelona. HK Express has also expanded with new routes to Beijing (Daxing), Bangkok (Don Mueang), Sanya, and Clark. The airline now serves over 80 destinations worldwide, with plans to increase this number to 90 by next year.
Looking ahead, Cathay Pacific is optimistic about reaching 100% of its pre-pandemic operational capacity by the first quarter of 2025. This confidence is underscored by a steady demand in the cargo sector and robust market sentiment from Hong Kong and the Chinese Mainland. The airline continues to adjust its freighter capacity to align with customer needs, ensuring sustained growth and service excellence.