Cargo business of Hong Kong’s Cathay ‘set for sharp decline amid Trump tariffs’
HSBC research report also says Hong Kong flag carrier’s full-year profits could be cushioned by lower jet fuel costs
Hong Kong flag carrier Cathay Pacific Airways’ cargo business faces declining China-US e-commerce volumes, rising chartered flight cancellations and falling freight spot rates, but full-year profits could be cushioned by lower jet fuel costs, according to a research report.
The report, which was published by HSBC on Wednesday, also said the company’s cargo business would contend with significant headwinds as a result of Sino-US trade tensions, citing another report from freight forwarder Dimerco Express.
The document from Dimerco Express showed a 50 per cent drop in e-commerce volumes year on year from China since mid-April, as many companies were halting direct shipments to the United States.
The HSBC report wrote: “We think the air freight market in 2025 is characterised by significant uncertainties due to geopolitical tensions, regulatory changes and shifting trade patterns.
“As a result, [Dimerco] saw several chartered cargo flights from mainland China cancelled since late April, with further cancellations anticipated in the coming weeks.
“Air freight capacity withdrawn is being shifted to destinations such as Mexico and other parts of Latin America, where demand has gone up.”