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SCMP Reporter

CATHAY Pacific Airways' cargo revenue is expected to increase 12 per cent this year to US$604 million, according to cargo marketing and sales manager Chris Evans.

  He was speaking on the eve of the departure of the carrier's new Boeing 747-400 freighter on its maiden flight to Australia.

  The freighter will be used for increased payload, take-off weight and range on the transpacific route.

  Overall capacity will increase by one flight per week to North America, two flights to Europe and one flight to Australia.

  Cathay already has four Boeing 747-200 freighters.

  The new aircraft has an additional 24 tonnes payload capacity and is more fuel efficient.

  Further cargo capacity will be added when the airline takes delivery of two passenger Airbus A340s in October and November.

  The new aircraft will enable Cathay to provide three flights a week from Hong Kong to Anchorage, Vancouver and Los Angeles.

  Mr Evans said capacity on the Los Angeles route would increase 40 per cent to 100 tonnes each way when the new freighter started flying on the route next month.

   ''The US market is huge, but Cathay is still a small player. I am sure the increased capacity will be welcomed by the market,'' he said.

  The two weekly flights on the Asia-Europe route will be in addition to the six weekly flights it has in association with Lufthansa of Germany.

  Mr Evans said load factors out of Europe to Asia had been good so far this year because of robust consumer demand, although load factors out of Asia had been falling.

  Asked if new capacity on the Europe route would hurt Air Hong Kong, in which Cathay is taking a 75 per cent stake, Mr Evans said the two carriers would compete on the route.

  Air Hong Kong is already a substantial operator on the Europe route.

  There will, however, be no conflict on the transpacific route because Air Hong Kong flies to Chicago and New York.

  Last year, cargo and mail revenue increased 7.6 per cent and accounted for 19.4 per cent of total revenue, ahead of 17.9 per cent for business class.

  Cargo revenue totalled $548 million, up from $509 million in 1992.

  But Mr Evans said yield on cargo and mail services fell 9.1 per cent.

  Cargo tonnes carried increased 13.1 per cent while cargo tonne kilometres rose 19.5 per cent, against growth of 12.7 per cent in cargo capacity.

  This was reflected in the increase in cargo load factor by 3.3 percentage points to 63.3 per cent.

  About 46 per cent of the cargo carried by the carrier last year originated in Hong Kong and China.

  Mr Evans said 60 to 70 per cent of the cargo lifted out of Hong Kong originated in China, mainly southern China.

       About 70 per cent of Cathay's cargo revenue was derived from Taiwan and North Asia, including South Korea and Japan.



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Cathay Pacific

Cathay expects cargo revenues to increase 12pc