Cathay Cargo Reports Strong March Volumes Amid Ongoing Middle East Disruptions
- Apr 20
- 2 min read
The Cathay Group has reported solid air cargo performance in March 2026, despite ongoing operational and cost challenges linked to the situation in the Middle East.
Cathay Cargo recorded an 11% year-on-year increase in cargo volumes during March, while available freight tonne kilometres grew by 2%. Over the first quarter of 2026, total cargo tonnage rose by 8% compared with the same period last year, reflecting continued resilience in global air freight demand.
According to Lavinia Lau, Chief Customer and Commercial Officer, demand was particularly strong for priority shipments, as shippers sought to secure capacity amid shifting market conditions caused by the Middle East conflict. Increased volumes were observed across key regions including Hong Kong, the Greater Bay Area, mainland China, Southeast Asia, and Europe.
Specialized cargo segments also performed well. Cathay Priority saw increased demand due to capacity constraints on long-haul routes, while Cathay Expert and Cathay Dangerous Goods benefited from strong shipments in sectors such as semiconductors and chemicals.
However, operational challenges continue to affect the airline’s cargo business. Freighter services to Dubai and Riyadh remain suspended until the end of May, limiting capacity across key trade lanes. In addition, route adjustments on Asia–Europe services have resulted in payload restrictions, as flights that previously operated via Middle Eastern hubs are now flying direct.
Cathay is currently evaluating alternative mid-point stops to restore payload efficiency and optimize operations. At the same time, the airline is facing rising jet fuel costs, which have significantly increased since the start of the Middle East conflict and are putting pressure on margins.
To mitigate the impact, Cathay has introduced fuel surcharges and adjusted its network, including a temporary reduction in passenger flight capacity. Around 2% of total frequencies have been affected, although the airline expects a return to normal operations from July, depending on developments in fuel prices and regional stability.
Looking ahead, Cathay anticipates continued strong demand on long-haul routes, supported by seasonal factors. However, market conditions are expected to remain volatile, with capacity constraints and geopolitical developments continuing to influence global air cargo flows.
Image source: aircargonews.net
