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The Cathay Group reported strong cargo and passenger demand in March 2026 even as a sharp rise in jet fuel prices put significant cost pressure on operations
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Cathay Pacific carried 24% more passengers in March 2026 vs. March 2025; ASKs up 9%; Q1 passenger volume up 20%
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HK Express carried over 750,000 passengers in March, up 22% year-on-year; ASKs grew 12%; Q1 up 18%
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Fuel cost surge forced Cathay to cut 2% of Cathay Pacific frequencies and 6% of HK Express from mid-May to end-June
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Dubai and Riyadh passenger flights suspended until June 30; freighter services to both cities suspended until May 31
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Middle East disruptions boosted demand as it shifted traffic toward Hong Kong as an alternative aviation hub
The Cathay Group reported strong cargo and passenger demand in March 2026, even as a sharp rise in jet fuel prices put significant cost pressure on operations.
Cathay Cargo carried 11% more freight in March compared with the same month last year, with available freight tonne kilometers rising 2%.
For the first quarter, total tonnage was up 8% against the same period in 2025.
On the passenger side, Cathay Pacific flew 24% more travelers in March year-on-year, with available seat kilometers (ASKs) growing 9% and first-quarter passenger volumes up 20%.
READ: Cathay cargo volume rises 12% in Oct, passenger traffic up 21%
Budget carrier HK Express also delivered strong numbers, carrying more than 750,000 passengers in March, a 22% increase year-on-year, while ASKs expanded 12%. HK Express’s Q1 passenger count was up 18% from the prior year.
The robust demand figures, however, are being overshadowed by a fuel cost crisis. Global average jet fuel prices surged to US$197.83 per barrel for the week ending April 10, 2026, nearly double the $99.40 per barrel recorded for the week ending February 27, according to International Air Transport Association data.
Cathay chief customer and commercial officer Lavinia Lau described the situation as a month of stark contrasts.
“March was a month of contrast. On the one hand, the ongoing situation in the Middle East shifted demand towards other aviation hubs and generated robust volumes on our flights. On the other hand, the price of jet fuel has increased significantly since the start of March and this is placing huge cost pressure on airlines around the world,” Lau said.
Adjustments to fuel surcharges have not been sufficient to absorb the additional costs, Lau said, leading the group to reluctantly reduce capacity. “Cutting back on capacity has always been our last resort, but regrettably, we have had to consolidate a small number of passenger flights from mid-May to end-June. This has affected around 2% of Cathay Pacific’s total frequencies and around 6% of HK Express’s total frequencies during this period,” she said.
The group has suspended Cathay Pacific passenger flights to Dubai and Riyadh until June 30, while freighter services to both cities remain grounded until May 31. To compensate, the airline added flights and seat capacity to Europe in March and April to capture rerouted demand.
“Beyond June, we plan to operate all our scheduled passenger flights, subject to developments in the Middle East situation and jet fuel price in the coming months. We are remaining agile in our response while striving to maintain our network and frequencies as much as possible for our customers, business partners and the Hong Kong international aviation hub,” Lau said.
On the cargo side, growth was broad-based. Lau said tonnage gains were particularly strong from Hong Kong, the wider Greater Bay Area, the Chinese Mainland, Southeast Asia, and Europe. The group’s premium Cathay Priority service saw heightened demand as shippers rushed to lock in long-haul capacity amid Middle East-related supply chain disruptions. Semiconductor and chemical shipments provided an additional boost to the Cathay Expert and Cathay Dangerous Goods specialist divisions.
READ: Cathay Cargo launches real-time customs tracking via IATA ONE Record
Passenger demand remained strong in March. Lau highlighted major events like Art Basel Hong Kong and the Hong Kong International Jewellery Show as key drivers for premium cabin traffic. Leisure travel increased later in the month, fueled by Indonesia’s Lebaran holiday and pre-Easter trips. Cathay Pacific also launched non-stop service to Seattle on March 30.
Looking ahead, Lau said demand is expected to stay solid through April, underpinned by Easter holidays and stronger long-haul bookings. For cargo, she flagged continued sensitivity to Middle East developments and capacity constraints on key trade lanes.
HK Express, meanwhile, announced it will launch daily non-stop service to Wuxi in China’s Jiangsu province starting July 17, adding another point to its growing Chinese Mainland network.
