Cathay Pacific Group has warned of possible impact from the ongoing trade war between the USA and China, with cargo demand expected to soften in the coming months.
The airline group, which comprises mainline operator Cathay and low-cost unit HK Express, says ”uncertainties” surrounding the trade tariffs from the USA could also lead to “changes in travel demand, increased costs and pressure on supply chains”.
Cathay is the latest in a growing number of operators to flag the growing uncertainty surrounding the Trump administration’s tariff policies.
Cathay’s chief customer and commercial officer Lavinia Lau states: “We are taking proactive steps to put ourselves in the best possible position in facing and mitigating these external forces as we remain aligned, agile and responsive in our approach.”
Lau also notes that the group’s cargo “network strength” allows it to “adapt and redirect our focus to emerging opportunities”.
On the passenger business, Cathay and HK Express still see strong travel demand in the near term, with the two carriers growing their network in April and May.
In March, Cathay carried more than 2.2 million passengers, 19.8% higher year on year, while HK Express carried 616,000 passengers, an increase of 25%. Lau notes that Cathay saw “softer demand” for passenger travel during the month due to the absence of holidays.
