April 17: Cathay Group released its traffic figures for March 2026, reporting robust growth in both passenger and cargo segments, while highlighting significant cost pressures due to a sharp rise in global jet fuel prices.
Commenting on the performance, Lavinia Lau, Chief Customer and Commercial Officer, Cathay Group, said,
“March was a month of contrast. While the ongoing situation in the Middle East shifted demand towards other aviation hubs and generated strong volumes, the price of jet fuel has increased significantly since the start of the month, placing substantial cost pressure on airlines globally.”
According to data from the International Air Transport Association, global average jet fuel prices surged to US$197.83 per barrel for the week ending April 10, 2026, compared to US$99.40 per barrel at the end of February.
Despite implementing measures such as fuel surcharge adjustments, the Group indicated that rising costs have necessitated limited capacity consolidation. A small number of passenger flights will be reduced between mid-May and end-June, affecting approximately 2% of Cathay Pacific frequencies and around 6% of HK Express operations. The Group aims to restore full schedules beyond June, subject to market conditions.
Cathay Pacific Performance
Cathay Pacific recorded strong passenger growth, carrying 2.8 million passengers in March 2026, a 24% increase year-on-year, with Available Seat Kilometres (ASKs) rising by 9%. For the first quarter, passenger numbers increased by nearly 20%.
Demand was driven by major events such as Art Basel Hong Kong and the Hong Kong International Jewellery Show, alongside increased leisure travel during regional holidays including Lebaran and Easter. The airline also launched non-stop flights to Seattle on March 30.
Due to the Middle East situation, flights to Dubai and Riyadh remain suspended until June 30, while additional capacity has been deployed on European routes to accommodate shifting travel demand.
Cathay Cargo Performance
Cathay Cargo reported an 11% increase in cargo volumes in March, with strong demand across Hong Kong, the Greater Bay Area, Mainland China, Southeast Asia, and Europe.
Specialist solutions such as Cathay Priority saw increased uptake amid global capacity adjustments, while Cathay Expert and Dangerous Goods services benefited from semiconductor and chemical shipments. Freighter services to Dubai and Riyadh remain suspended until May 31.
HK Express Growth Momentum
HK Express carried over 750,000 passengers in March, reflecting a 22% year-on-year increase, with continued strong demand across Southeast and Northeast Asia.
The airline announced the launch of daily direct flights to Wuxi starting July 17, further expanding its network in Mainland China. Leisure travel demand is expected to remain strong through April, supported by the Easter holiday season.
Outlook
The Cathay Group expects demand to remain robust in the near term, supported by seasonal travel and increased transit traffic. However, the Group noted that market conditions remain dynamic, influenced by geopolitical developments and fuel price volatility.
The March 2026 performance underscores the Group’s resilience in navigating shifting market dynamics while maintaining operational stability and customer service standards.
