Cathay Pacific and Dragonair report tough times ahead for freighter operations
15 May 2008
Hong Kong-based carriers, Cathay Pacific and Dragonair said their freighter operations have been severely impacted by rising costs of jet fuel and also that they were now facing increasing competition from sea freight.
According to Ron Mathison, director and general manager cargo for Cathay Pacific, the two carriers had managed an increase in cargo tonnage for April, in line with an increase in capacity, but said that they faced increased cost pressures in the months ahead from skyrocketing fuel prices and sea freight.
The total of cargo and mail carried by both airlines in April was up 8.5 per cent, as compared to the same month last year even as cargo capacity increased 8.4 per cent.
"Demand out of Hong Kong and mainland China remained quite robust in April and business was boosted by a good market reaction to our recently-launched freighter service to Hanoi and Dhaka,'' said Mathison.''However, increasing jet fuel prices are inflicting serious damage on our freighter business and we stand to face increasing competition from ocean cargo in May and June, which are traditionally slack months for aircargo out of Asia."
