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Cathay Pacific: Cargo still down after two continuous years of soft markets

1-May-2013 11:24 AM

Cathay Pacific, in the Apr-2013 edition of CX World Magazine, stated (Apr-2013) that on the cargo side, the carrier is still dealing with a business downturn that has lasted for an unprecedented two years. General manager Cargo Sales & Marketing James Woodrow says that European economies are still in a fragile state and people are reluctant to consume. He explained, “Demand is therefore weak and competition on these routes remains very strong, particularly from the Middle East carriers". He noted that the market from Asia to the Americas is slightly more encouraging but again competition is fierce and Brent fuel prices were stuck in the USD110 per barrel region in the first quarter. He added: “These are tough trading conditions, particularly for operating freighters, so we were pleased to see fuel drop below USD100 this month". Despite the challenges, the US market is still
relatively buoyant and there are other bright spots in the network including India, Bangladesh and Vietnam. Mr Woodrow added: “It is hoped that the second quarter will see some improvement over Q1, though the stiff competition will keep yields under continual pressure. For now we will need to keep managing our freighter capacity to keep it in line with market demand". [more - original PR]