Hong Kong’s Cathay Pacific Airways ready to cut capacity or cancel flights if US-China trade war hits cargo business, says CEO Rupert Hogg ahead of new tariffs from Donald Trump
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One of the world’s biggest air cargo carriers has said it is ready to cut capacity or cancel flights should the US-China trade war dent demand, with Washington’s tariff increase on US$200 billion of Chinese goods due to kick in on Friday.
But Cathay Pacific Airways CEO Rupert Hogg said the tit-for-tat battle had not been “catastrophic” for the company’s freight arm, which generates a quarter of its revenue.
In an interview on the sidelines of a company rebrand on Thursday, Hogg said cargo volume was still above 2017’s tonnage.
“It is definitely the case that this year has been lower than last year and the numbers sort of speak for themselves,” the Cathay Pacific chief said, before adding that “demand is down but it’s not hugely down or catastrophic”.
China threatened countermeasures in response to US President Donald Trump announcing a hike in tariffs last Sunday on US$200 billion of Chinese goods from 10 per cent to 25 per cent.