Cathay’s H1 cargo revenue grows 1.4%

Cathay Pacific Airways reported 49.6 billion HK ($6.4 billion) in revenue for the first half of 2024, an increase of 13.8% from H1 2023. Cathay’s cargo revenue rose 1.4% year over year to $1.6 billion. [caption id="attachment_57141837" align="alignright" width="300"] (Courtesy/Cathay Cargo)[/caption] Like other cargo carriers , Cathay’s H1 earnings for cargo operations shows improvement. Cathay’s full-year 2023 cargo revenue had fallen 16% YoY. Cathay reported an H1 operating profit of $771.8 million, down 31.4% YoY, in an earnings report released Aug. 7. Cathay also reported in H1: Diluted earnings per share of 6 cents, down 14.9% YoY; Profit margin of 7.3%, down 2.5 percentage points YoY; Available cargo tonne kilometers (CTK) of 6.8 billion, up 11.4% YoY; Cargo revenue per available CTK of 21 cents, down 8.5% YoY; Cargo revenue tonne kilometers of 4.1 billion, up 4.6% YoY; 719,000 tonnes of cargo carried, up 10.4% YoY; Cargo load factor of 59.9%, down 3.9 percentage points YoY; and Cargo yield of 34 cents, down 2.9% YoY. “The additional belly space provided by our passenger flights also enabled us to offer more cargo capacity and more choices for our cargo customers, resulting in higher tonnage carried in the first half of 2024 compared with the same period in 2023,” Cathay Chairperson Patrick Healy said in the report. Cathay ranks 13th on Air Cargo Next ’s Freight 50 list of top cargo carriers, flying 5.7 billion CTKs in 2022. Cathay’s freighter fleet, according to the report, has: An order for six A350F aircraft for delivery in 2026 and beyond; Six 747-400ERF aircraft with an average age of about 15 years; and Fourteen 747-8F aircraft with an average age of about 11 years. Cathay’s aircraft “orders include narrowbody, regional widebody, long-haul widebody and large freighter aircraft, as we both expand and modernize our fleet,” Healy said in an Aug. 7 media briefing. “Moreover, the enhanced fuel-efficiency they provide will play an important role in reducing emissions and helping us achieve our carbon net-zero goal by 2050.” Shares of Cathay Pacific Airways ( OTCMKTS: CPCAY ) were down 3.92% from market open to $4.90 as of market close on Aug. 7. Shares were up 2.65% from market open to $5.08 as of market close today. Cathay has a market capitalization of $6.5 billion. LATAM Airlines’ cargo revenue up 6.9% in Q2 LATAM Airlines Group reported $3 billion in adjusted operating revenue for the second quarter, up 13.2% YoY. The carrier’s adjusted cargo revenue for Q2 increased 6.9% YoY to $380 million, according to the carrier group’s earnings report released Aug. 7. [caption id="attachment_57065535" align="alignright" width="300"] (Courtesy/LATAM Cargo)[/caption] LATAM’s Q1 cargo revenue was down 2.1% YoY and its full-year 2023 revenue was down 17.4% YoY. The carrier group reported $273.8 million in operating income, up 0.9% YoY. LATAM also reported in Q2: Adjusted EBITDAR of $618.6 million, up 10.7% YoY; 1.9 billion available CTKs, up 12.2% YoY; Cargo revenue tonne kilometers of 1 billion, up 17.9%; Moving 223.2 tonnes of air cargo, up 9.7% YoY; Cargo load factor of 53.1%, up 2.6 percentage points YoY; and Revenue per available CTK of 19 cents, down 4.6% YoY. LATAM ranks 25th on Air Cargo Next ’s Freight 50 list, flying 3.3 billion CTKs in 2022. LATAM’s fleet comprises 340 aircraft, including 21 Boeing 767-300Fs, according to the report. LATAM registered a consolidated fleet debt of $4.4 billion, alongside a non-fleet debt of $2.7 billion, according to the report. LATAM was relisted on the New York Stock Exchange on July 25, ending a four-year absence from the exchange after filing for Chapter 11 bankruptcy in 2020. “This is a significant milestone for the company, as it provides LATAM Airlines Group greater liquidity and visibility,” the earnings report stated. Shares of LATAM Airlines Group ( NYSE: LTM ) were down 0.59% from market open to $23.77 as of market close on Aug. 7. Shares were down 0.29% from market open to $23.70 as of market close today. LATAM has a market capitalization of $7.18 billion. Air Canada’s cargo revenue rises 1.3% in Q2 Air Canada reported CA$ 5.5 billion ($4 billion) in Q2 operating revenue, up 2% YoY. The carrier’s cargo revenue for Q2 increased 1.3% YoY to $167.5 million, according to its Aug. 7 earnings report. [caption id="attachment_57136089" align="alignright" width="300"] (Courtesy/Air Canada Cargo)[/caption] Air Canada’s Q1 cargo revenue was down 9.7% YoY and its full-year 2023 revenue was down 27% YoY. Cargo revenues increased in Q2 due to higher volume on chargeable kilograms and higher freighter revenues in the Americas, according to Mark Galardo , president of cargo, on the company’s Aug. 7 earnings call. “The yield dynamic in most markets and lower freighter operations in the Atlantic market particularly offset this increase,” Galardo said. “Continually and swiftly addressing the market conditions, we removed two 767 freighters from service in April. Taking a prudent approach, we have planned capacity to be up between 5.5% and 6.5% for the full year. “This reflects sustained supply chain pressures and current market conditions and allows us to pursue more favorable yields,” he said. Air Canada has six Boeing 767 dedicated freighters in service, according to the report. Air Canada ranks 36th on Air Cargo Next ’s Freight 50 list, flying 1.9 billion CTKs in 2022. The carrier’s operating income in Q2 was $339.4 million, down 41.9% YoY. Air Canada also reported in Q2: Adjusted EBITDA of $665.6 million, down 25.1% YoY; and Diluted earnings per share of 76 cents, down 55.6% YoY. Shares of Air Canada ( OTCMKTS: ACDVF ) were down 1.18% from market open to $10.87 as of market close on Aug. 7. Shares were up 2.6% from market open to $11.15 as of market close today. Air Canada has a market capitalization of $4 billion. Editor’s note: All amounts have been converted to U.S. dollars.

Cathay’s H1 cargo revenue grows 1.4%

LATAM’s Q2 cargo revenue up 6.9%; Air Canada’s cargo revenue up 1.3%

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