New | Cathay Pacific, Dragonair struggle to grow cargo volumes amid China slowdown

Cathay Pacific Airways and its wholly owned unit Dragonair barely achieved growth in cargo volumes last month, underscoring concerns over a slowdown in exports from China.

Volumes grew just 1.5 per cent to 157,688 tonnes from the same month a year earlier, Cathay Pacific said on Thursday.

“The cargo traffic growth of 1.5 per cent is weak. This is a cause for concern. Chinese exports fell sharply in March. The cargo traffic of Cathay Pacific and Dragonair followed the Chinese export trend,” said Ajith Kom, a Singapore-based analyst with UOB Kay Hian Research. 

In March, China’s exports fell 15 per cent year on year, according to official data. Cargo services accounted for 20.5 per cent of the combined revenue of Cathay Pacific and Dragonair in the first half of 2014, while passenger services made up 74.7 per cent, according to the company’s 2014 interim report.

The March figures provided a brighter picture on the passenger front. The two carriers boosted passenger numbers by a bigger than expected 11 per cent to 2.89 million from a year earlier.