Cathay Cargo, the freighter arm of Cathay Pacific Airways, has recorded an 11 per cent year-on-year growth in cargo tonnage from India up to the end of October and is optimistic of further gains as ties between India and China gradually normalise.
Based in Hong Kong — the world’s busiest airport for cargo traffic — Cathay Cargo relies significantly on China-linked trade flows. Despite global uncertainties triggered by US tariffs and regulatory changes such as the removal of the de-minimis exemption, the airline says its business has remained resilient.
“Our interim report did mention market uncertainties, but it also highlighted growth,” said Dominic Perret, Director, Cathay Cargo. “Cargo revenue grew 2.2 per cent to HK$11.1 billion, while tonnage increased 11.4 per cent to 801,000 tonnes in the first half. That positive trend has continued into the second half of the year.”
Network strength drives resilience
Perret attributed the resilience largely to Cathay’s extensive global network. The airline operates passenger flights to over 100 destinations, including 24 in mainland China, a key market, alongside Boeing 747 freighters to more than 40 destinations worldwide.
As global supply chains evolve and new trade lanes emerge, Cathay Cargo continues to adjust capacity in line with market demand. The airline has recently increased freighter services to Hanoi, reflecting strong manufacturing growth in Southeast Asia, and launched freighter flights to Madrid to cater to rising e-commerce demand from Europe.
India among top-performing markets
India continues to be a strong performer for Cathay Cargo. According to Rajesh Menon, Regional Head for South Asia, the Middle East and Africa, growth from India has been driven mainly by mobile phone and automobile shipments.
“As of October-end, tonnage uplift from India has grown 11 per cent year-on-year,” Menon said. “India is among our top three markets globally in terms of freighter capacity and profitability.”
He added that improvements in India’s logistics ecosystem, including the development of new highways and infrastructure, are expected to attract more manufacturing investment and support export growth.
India–China normalisation a positive sign
Cathay Cargo sees the resumption of passenger and freighter flights between India and China as a positive development for trade.
“Trade between India and China has increased, including Indian exports,” Menon said. “The normalisation of ties is encouraging, and we believe Cathay Cargo will have an important role in supporting this trade.”
Regulatory flexibility sought
The airline, however, is seeking greater regulatory flexibility in India. Cathay Cargo currently operates 13 freighter flights a week to Chennai, Delhi and Mumbai, each carrying over 100 tonnes.
“We would like the government to allow freighters to operate to two Indian airports in a single journey,” Perret said. “This would improve utilisation of available payload and benefit shippers. It would also allow us to consider new freighter destinations such as Hyderabad, Bengaluru and Ahmedabad.”
Strong push on digitalisation
Cathay Cargo continues to invest heavily in technology and digital solutions. Earlier this year, it became the first airline globally to roll out the IATA ONE Record platform, enabling shippers to receive real-time updates on customs clearance across Europe, the US, Canada and the UAE.
The airline is also using digital tools for staff training and cargo screening, including VR-based training modules developed in collaboration with Hong Kong University.
On the commercial side, digital adoption remains strong. “Globally, 80 per cent of Cathay Cargo shipments are booked online, and in India the figure is over 90 per cent,” Perret said.
With steady demand, a strong network and increasing digital adoption, Cathay Cargo remains cautiously optimistic about growth prospects, particularly from India and the broader Asia region.
