Cathay Pacific, Hong Kong’s flagship carrier, has announced impressive traffic figures for June 2024, marking a significant milestone in its post-pandemic recovery.
The airline group, which includes its subsidiary HK Express, achieved a new daily passenger record on June 30, 2024, carrying approximately 92,000 passengers.
This achievement highlights the robust rebound of air travel demand. In the first half of 2024, Cathay Pacific and HK Express collectively transported around 13.5 million passengers, demonstrating strong growth in the aviation sector.
This surge in passenger numbers reflects increasing consumer confidence and the easing of travel restrictions globally.
June 2024 Performance Breakdown
Cathay Pacific’s June 2024 figures paint a picture of significant growth across various metrics:
- Passenger Count: The airline carried 1,837,706 passengers, an 18.7% increase compared to June 2023.
- Revenue Passenger Kilometres (RPKs): A substantial year-on-year growth of 23.7% was observed.
- Available Seat Kilometres (ASKs): Capacity increased by 30% compared to the previous year.
- Passenger Load Factor: Despite the capacity increase, the load factor remained strong at 83.5%, though it decreased by 4.2 percentage points year-on-year.
The first six months of 2024 showed even more impressive growth when compared to the same period in 2023:
- Total Passengers: 10,659,601 (36.4% increase)
- ASKs: 42.7% increase
- RPKs: 34.9% increase
These figures underscore Cathay Pacific’s successful strategy in meeting the resurging travel demand while optimizing its capacity.
Cargo Operations Thrive
Cathay Pacific’s cargo division also reported robust performance:
- June 2024 Cargo Tonnage: 124,568 tonnes (12% year-on-year increase)
- Cargo Revenue Tonne Kilometres (RFTKs): 5.6% year-on-year growth
- Available Cargo Tonne Kilometres (AFTKs): 9.4% year-on-year increase
The first half of 2024 saw overall cargo growth with tonnage increasing by 10.5% to 719,464 tonnes, AFTKs up by 11.4%, and RFTKs rising by 4.6% compared to the same period in 2023.
Travel Trends and Market Insights
Lavinia Lau, Chief Customer and Commercial Officer, provided valuable insights into the travel trends observed in June.
After a quieter May, June witnessed a strong rebound in travel sentiment across both long-haul and short-haul routes.
Long-haul travel demand was primarily driven by returning student traffic, with load factors for destinations like the United States, Canada, United Kingdom, and Europe approaching 90%.
The resumption of the seasonal Barcelona service proved particularly popular among travelers from Hong Kong, Spain, and Australia.
Short-haul leisure travel saw a boost during the Dragon Boat Festival and Hong Kong SAR Establishment Day long weekends. Japan remained a top destination for Hong Kong travelers.
Cargo Market Dynamics
Despite June traditionally being a slower month for air cargo, Cathay Pacific experienced stronger-than-anticipated demand.
Significant year-on-year tonnage growth was observed from key markets including Hong Kong, mainland China, Japan, and Europe. The airline also noted an increase in pharmaceutical shipments, particularly from Europe.
The relaunch of Cathay Expert, a specialized handling solution for odd-sized, heavy, or fragile cargo, was met with positive customer response. This resulted in a 34% tonnage improvement compared to the previous month.
Future Outlook and Strategic Moves
Looking ahead, Cathay Pacific anticipates a robust summer travel peak across its network. The airline continues to expand its route offerings, with plans to launch a four-times-weekly service to Ningbo in August.
In addition, a three-times-weekly seasonal service to Cairns is planned between December and March.
These additions bring the total number of new destinations announced by the Cathay Pacific Group in 2024 to ten, seven of which have already commenced operations.
In the cargo sector, Cathay Pacific expects the healthy demand observed in the first half of the year to continue into the traditional peak period in the second half.
The airline plans to adjust its freighter capacity to accommodate customer needs, particularly by adding more capacity to routes serving the Americas.
Financial Milestone
In a recent significant financial move, Cathay Pacific announced its intention to buy back the remaining HK$9.75 billion of preference shares.
These were issued to the Hong Kong SAR Government as part of its 2020 recapitalization. This transaction, scheduled for July 31, 2024, will bring the total preference share dividends paid to the government to HK$2.44 billion.
Overall, it marks the successful conclusion of this financial arrangement and signals Cathay Pacific’s recovery and financial health.
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