Cathay Cargo reported a solid performance in March, with cargo volumes rising 11% compared with the same month last year, even as the airline continues to face operational and cost pressures linked to the conflict in the Middle East.
The carrier said available freight tonne kilometres increased by 2% in March, while total tonnage for the first three months of 2026 was up 8% compared with the same period in 2025.
Cathay chief customer and commercial officer Lavinia Lau said March, traditionally a quarter-end peak for cargo, delivered healthy growth across the airline’s network. Demand was particularly strong from Hong Kong, the wider Greater Bay Area, mainland China, Southeast Asia and Europe.
She added that Cathay Priority saw increased tonnage as shippers sought to secure capacity on long-haul routes amid market adjustments caused by the Middle East situation. Other specialist solutions, including Cathay Expert and Cathay Dangerous Goods, also benefited from stronger semiconductor and chemical shipments.
Still, the geopolitical backdrop continues to affect operations. Cathay Cargo’s freighter services to Dubai and Riyadh remain suspended until 31 May, while capacity on certain routes is under pressure. Earlier this month, the airline confirmed it was evaluating alternative mid-point stops on the Asia-Europe trade lane because five of the eight freighter services that had previously routed via Dubai are now operating directly, creating payload limitations.
Cargo director Dominic Perret said the airline is reviewing alternative intermediate points in an effort to remove those restrictions.
Cathay is also having to contend with significantly higher jet fuel prices. Lau said the group has taken all suitable measures to keep flights operating as normally as possible, including adjusting fuel surcharges, but acknowledged these actions have not been enough to fully offset the sharp increase in fuel costs.
The airline has also temporarily reduced capacity on passenger services. Normal scheduled operations are expected to resume from July, although this will depend on how the Middle East situation and fuel prices develop in the coming months. Lau did not specify whether belly cargo had been directly impacted, but confirmed that the capacity adjustments affected around 2% of Cathay Pacific’s total frequencies.
Looking ahead to April, Cathay expects demand on long-haul trunk routes to remain healthy during the seasonal holiday period, although market conditions are likely to stay dynamic and highly sensitive to developments in the Middle East and related capacity constraints on some trade lanes.
