Cathay Pacific loses out as cargo demand dwindles in Europe
Cathay Pacific Airways has lost market share on European cargo routes as freight rates sink on weak demand from the troubled euro zone.
Cathay Pacific Airways has lost market share on European cargo routes as freight rates sink on weak demand from the troubled euro zone.
The carrier expects the overcapacity problem in the cargo market will only be corrected in the last quarter of the year.
If we cannot cover our costs, we have ... to reduce our freight capacity
"Cathay has lost some market share during the downturn, especially to Europe," said cargo director Nick Rhodes. "If the rates reach a level where we cannot cover our operating costs, we have no choice but to reduce our freight capacity."
Cathay has halved its freighter capacity on European routes to 11 freighters weekly from 21 last year. Overall capacity fell 1.8 per cent in the first half of the year.
Cathay said earlier its cargo tonnage dropped more than 4 per cent last month from a year earlier, against 1 per cent cargo growth at the airport.
Rhodes said Cathay was opting to carry high-yield or special cargo, which was still profitable.
The disequilibrium would only be corrected in the last quarter when new high-technology products were launched, he said.