Cathay Pacific scales back expansion plans for 2016

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Cathay Pacific, which today said it would be hosting a press conference on Thursday for a “major announcement”, has significantly scaled back its expansion plans for this year. It has cut back on international routes and frequencies, including to Manchester, Gatwick and Boston. It is hoping to boost its on-time performance, but also blamed pilots’ work-to-rule action.

Last week the carrier released its cargo figures for January, showing a 1.4% increase on last year. Tonnage rose by 4.3% for 2015, on a capacity rise of 5.4% and a 5.4% rise in RTKs. Mark Sutch, general manager cargo sales & marketing said: “The seasonal peak for air freight lasted until the week before Christmas and our performance in December, at least in terms of tonnage lifted, was marginally ahead of expectations. Demand on the transpacific and Indian routes remained robust. Unfortunately, the excess of capacity in the world’s air cargo markets made it difficult for carriers to get rates up to the kind of levels expected during the year- end peak. Overcapacity and pressure on yield will remain concerns for the industry moving into the new year.”