Cathay Pacific & Dragonair: Low yields
Lower demand from Mainland China and higher from India and Southeast Asia in February 2016 because freight demand dropped sharply as factories in Mainland China closed down for the Chinese New Year holiday.
Cathay Pacific and Dragonair carried 117,299 tonnes of cargo and mail in February 2016, a 10.1 per cent decrease compared to the same month last year. The cargo and mail load factor fell by 7.5 percentage points to 58.0 per cent. Capacity, measured in available cargo/mail tonne kilometres, was up by 1.1 per cent while cargo and mail revenue tonne kilometres (RTKs) flown decreased by 10.4 per cent. In the first two months of 2016, tonnage carried fell by 4.6 per cent against a 1.8 per cent increase in capacity and a 5.2 per cent drop in RTKs.
Mark Sutch, General Manager Cargo Sales & Marketing, Cathay Pacific said, “Air freight demand dropped away sharply in the early part of the month as factories in Mainland China closed down for the Chinese New Year holiday. In comparison to the holiday period last year, demand was slower in picking up after factories reopened, ASK Cargo ATK which led to a higher concentration of lower-yield cargo from Southeast Asia and India being uplifted onto our transpacific freighter flights. The sustained drop in fuel prices has led to older aircraft becoming economically viable. The resulting overcapacity continues to put downward pressure on cargo yields.”