The Cathay Group shared its March 2025 traffic results, highlighting strong growth in Cathay Pacific passenger and cargo sectors despite looming challenges from trade tariffs.
The airline group anticipates a dip in air cargo demand between the Chinese Mainland and the United States due to ongoing tariff uncertainties.
Cathay Group March Performance
Lavinia Lau, Chief Customer and Commercial Officer, emphasized the group’s progress toward surpassing 100 passenger destinations by mid-2025. Cathay Pacific resumed non-stop flights to Hyderabad in March and will launch services to Dallas and Urumqi in April.
Meanwhile, HK Express is set to introduce flights to Nha Trang, Ishigaki, and Komatsu in April, with Changzhou and Yiwu joining its network in May.
“March was quieter for leisure travel, but our cargo business saw robust growth as we entered the year’s first cargo peak,” Lau said.
However, she noted that trade tariffs aspect ratio: 16:9 tariff developments could disrupt cargo operations, travel demand, and supply chains. “We’re taking proactive steps to stay agile and responsive to these challenges,” Lau added.
Cathay Pacific Passenger Performance
In March 2025, Cathay Pacific carried 19.8% more passengers than in March 2024, with Available Seat Kilometres (ASKs) up by 25.5%.
For the first quarter of 2025, passenger numbers rose 23.4% compared to 2024. Despite softer leisure travel demand due to fewer long-weekend holidays in Hong Kong, premium cabin demand remained strong. This was fueled by events like the Hong Kong International Jewellery Show and Art Basel Hong Kong.
The Cathay/HSBC Hong Kong Sevens also drove significant inbound traffic, particularly on long-haul routes. To celebrate the event’s debut at the new Kai Tak Sports Park and the 100th anniversary of Kai Tak Airport, Cathay Pacific performed a special flypast.
Looking ahead, Easter holiday demand has been healthy, and from August 2025, Cathay Pacific will offer 100% seatback inflight entertainment and high-speed Wi-Fi across its fleet. This is a rare achievement among global airlines.
Cathay Cargo Steady Growth
Cathay Cargo reported a 10.6% increase in cargo tonnage for March 2025 compared to the previous year, with Available Freight Tonne Kilometres (AFTKs) up by 8.5%. However, the load factor dipped slightly by 1.2 percentage points. For the first quarter, tonnage grew by 12% year-on-year.
Specialized solutions remain a priority. Cathay Priority saw strong growth, and the refreshed Cathay Fresh solution enhances perishable transport reliability.
A notable milestone was the launch of an intermodal cold-chain route via the Hong Kong–Zhuhai–Macao Bridge, delivering chilled seafood from Southeast Asia to the Greater Bay Area.
Lau cautioned that tariff changes and de minimis rule adjustments from May could soften U.S.-China cargo demand. “Our network’s flexibility allows us to redirect freighters to emerging opportunities,” she said, stressing vigilant market monitoring.
HK Express Continues Expansion
HK Express carried over 610,000 passengers in March, a 25.4% increase from 2024, with ASKs rising 35.6%. First-quarter passenger numbers grew by 34.3% year-on-year.
“We’re maintaining momentum by adding destinations and capacity,” Lau noted. Easter demand was solid, though pre-summer and peak summer bookings are slower, with travelers booking closer to departure.
Looking Ahead
The Cathay Group’s March performance reflects resilience amid global uncertainties. By expanding its network, enhancing passenger experiences, and adapting cargo strategies, the group is well-positioned for growth.
However, tariff-related disruptions pose risks to demand, costs, and supply chains. “We’re aligned and responsive, ready to tackle these external forces,” Lau affirmed.
As Cathay Pacific and HK Express continue to innovate and expand, their focus on customer experience and operational flexibility will be key to sustaining momentum in a dynamic market.
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