Cathay Pacific announced robust passenger and cargo figures for October 2024, marking a significant milestone for the Hong Kong-based airline. For the first time this year, the carrier operated over 10,000 passenger and cargo flights within a single month, reflecting a substantial recovery and increasing market share. This impressive performance was driven primarily by strong growth in premium cabin and business travel segments, boosted by a series of exhibitions, conventions, and the major Canton Fair in Guangzhou.
October's passenger numbers reached 2.01 million, representing a notable 19.6% year-on-year (YoY) increase compared to October 2023. This surge follows months of strategic network expansion, with Cathay Pacific steadily adding capacity and launching new routes. The resulting higher passenger load factors demonstrate the effectiveness of this expansion strategy. Lavinia Lau, Cathay Pacific's Chief Customer and Commercial Officer, attributed the growth to several factors. The National Day "Golden Week" holiday in early October and the Chung Yeung Festival long weekend in Hong Kong fuelled significant leisure travel from Hong Kong and mainland China to destinations across Southeast Asia, Northeast Asia, and Europe.
However, it wasn't just leisure travel contributing to the positive results. Lau highlighted the sustained strength of business travel, significantly impacted by numerous exhibitions and conventions held in Hong Kong, along with the considerable business generated by the Canton Fair. This robust business travel contributed to October achieving the highest number of premium cabin passengers since the pandemic. This underscores the importance of Cathay Pacific's strategic focus on high-yield segments in its recovery.
Despite the positive passenger figures, the airline's passenger load factor dipped slightly to 83.1%, down 1.6 percentage points YoY. This was attributed to a 21.3% YoY increase in available seat kilometres (ASKs) outpacing the 19.1% rise in revenue passenger kilometres (RPKs), reflecting the airline's proactive approach to adding capacity ahead of anticipated demand. This strategic move, while resulting in a minor temporary reduction in load factor, positions Cathay Pacific for further growth in the coming months, particularly during the peak holiday season. This contrasts with the first ten months of 2024, where the airline saw a 27.4% YoY increase in passenger numbers to 18.57 million, albeit with a load factor of 83.0% - a 3.8 percentage point decrease compared to the same period in 2023 due to a 32.7% increase in capacity.
Looking ahead, Cathay Pacific anticipates a strong finish to the year, predicting a busy Christmas period with substantial outbound travel from Hong Kong, particularly to Japan. The airline also expects considerable inbound travel from North America, the UK, and other European countries, driven by visits from friends and relatives. This optimistic forecast is further reinforced by the positive reception to the airline's recently launched direct flights between Hong Kong and Riyadh, Saudi Arabia, a route experiencing strong demand from multiple regions. Additional expansion is planned with a seasonal Cairns service launching in December and a resumption of services to Hyderabad in March 2025.
October also showcased positive results in Cathay Pacific's air cargo business. The airline transported 142,323 tonnes of cargo, a 14.3% YoY increase. While cargo revenue tonne kilometres (RFTKs) increased by 9.8% YoY, the cargo load factor rose by 0.8 percentage points to 61.5%, reflecting efficient operations and strong demand. Lau attributes this to increased shipments via Cathay Expert services, particularly machinery movements from Northeast Asia, and continued growth in Cathay Priority shipments, driven by increased inventory replenishment ahead of upcoming festive seasons and year-end sales. Despite a slight reduction in the ten-month load factor for freight to 83.0% against a capacity increase of 8.8%, the overall trend remains positive, indicating a strong outlook for the airline's cargo operations. The airlineâs strategic capacity adjustments and focus on premium segments position it for continued success in the coming months and beyond.
