Cathay Cargo revenue rises 2% despite lower demand due to tariffs

Cathay Cargo today reported 11.1 billion HKD ($1.4 billion) in revenue for the first half of 2025, an increase of 2.2% year over year. “Despite the uncertainties caused by tariffs and changes to the de minimis exemption, our cargo business demonstrated resilience,” Cathay Group Chair Patrick Healy said in today’s H1 earnings report. [caption id="attachment_57141837" align="aligncenter" width="1920"] (Courtesy/Cathay Cargo)[/caption] Cargo demand from Hong Kong and mainland China into the United States was diminished by tariffs imposed in April and the elimination of the de minimis exemption in May, according to the report. However, the group saw some recovery following a temporary reduction in tariffs beginning in mid-May. E-commerce demand fell slightly in H1, but Cathay Cargo offset the shortfall by capturing additional cargo volumes to optimize flight capacity, the report said. Freighter fleet Cathay Cargo operates twenty freighters: Six owned 747-400ERFs; Twelve owned 747-8Fs; and Two 747-8Fs on finance lease. The carrier has orders for six A350Fs , which it expects to receive beginning in 2027, according to the report. Airbus announced in February that the A350F’s entry into service has been delayed to the second half of 2027 , mostly because of persisting supply chain challenges with Spirit AeroSystems , which produces center fuselage sections, front spars and fixed leading edges for A350s, Chief Executive Guillaume Faury said during Airbus’ annual results call on Feb. 20. Nevertheless, Airbus has made progress on its A350F prototype, completing the horizontal stabilizer on July 22 and completing the wingset in May . Cathay Group has also ordered fourteen additional 777-9 passenger aircraft, with options for seven more, the group announced today. The group now has orders for thirty-five of the type. Additionally, Cathay Group subsidiary Air Hong Kong removed its remaining A300-600Fs from service this year and completed its transition to only A330Fs . Air Hong Kong operates ten A330-300P2Fs and four production A330-200Fs, all Trent 700-powered. H1 results Cathay Group reported $6.9 billion in H1 revenue, an increase of 9.5% YoY. The carrier group also reported in H1: Attributable profit of $465.1 million, up 1.1% YoY; Diluted earnings per share of 7 cents, up 16.6% YoY; 7.3 billion available cargo tonne kilometers (CTK), up 8.1% YoY; 4.3 billion in revenue CTK, up 5.9% YoY; Cargo revenue per available CTK of 19 cents, down 5.6% YoY; 801,000 tonnes of cargo carried, up 11.4% YoY; Cargo load factor of 58.6%, down 1.3 percentage points YoY; and Cargo yield of 33 cents, down 3.4% YoY. For the rest of the year, “regarding Cathay Cargo, uncertainty in the market environment remains and we will stay vigilant and agile, while continuing to serve demand where it arises,” Healy said. Avianca Cargo revenue up 15.5% YoY Avianca Cargo reported $173 million in revenue for the second quarter, an increase of 15.5% YoY that was driven by “resilient trade flows,” the carrier said in today’s earnings report. The Colombian carrier transported more than 20,000 tonnes of flowers during the Mother’s Day season in Q2, up 15% YoY, the report said. [caption id="attachment_56725522" align="aligncenter" width="1984"] (Courtesy/Avianca)[/caption] To support the flower trade, as well as the flow of other goods from South America to North America, Avianca Cargo and Amazon Air Cargo began daily 767-300F charter service between Miami (MIA) and Bogota (BOG) in Colombia in April. Avianca reported a Q2 net loss of $16 million, an improvement from a net loss of $63 million in Q2 2024. The carrier also reported in Q2: Record EBITDAR of $355 million, up 60.6% YoY; Operating revenue of $1.4 billion, up 18.7% YoY; and EBIT of $133 million, up 86.7% YoY. Freighter strategy Avianca Cargo took delivery of two Airbus medium-widebody conversions in June: A 2012-vintage, Trent 700-powered A330-200P2F (1342), its first of the type, converted from its own passenger fleet; and A 2013-vintage A330-300P2F (1382, ex-SmartLynx), to enter service with affiliate Avianca Cargo Mexico, renamed from AeroUnion in June. Avianca plans to take delivery in 2026 of another A330P2F, making it the fourth of the type for the carrier. The additions are part of an expansion and collaboration strategy with Avianca Cargo Mexico, Avianca Cargo Chief Executive Diogo Elias said during a fireside chat at Cargo Facts LATAM 2025 in February in Sao Paulo. The carrier received its first A330-300P2F in April 2024 on lease from CDB Aviation and assigned that 2006-vintage freighter (791, ex-SmartLynx) to Avianca Cargo Mexico to operate. Avianca also operates six 2012- to 2014-vintage, production A330-200Fs (1368, 1380, 1428, 1448, 1534 and 1506). Editor’s note: All amounts have been converted to U.S. dollars. Cargo Facts Symposium, the quintessential event for stakeholders and key leaders in the global freighter and air cargo industries, will take place Oct. 22-24 at the Grand Hyatt in Nashville . Learn more and register today to take advantage of the early-bird rate before Sept. 5.

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