In the first half of the year, Cathay Cargo's freight volume increased by 9% compared to the same period last year. This growth is attributed to improved economic indicators in mainland China, where global trade figures showed double-digit growth for the first half of 2026. As a result, cargo flows increased not only towards America but also between mainland China and Southeast Asian countries.

In July, the company's operations were disrupted by Typhoon Noul, the first of the year, which led to the closure of Hong Kong International Airport for nearly a full day. Additionally, operations were affected by escalating tensions in the Persian Gulf region and the introduction of new customs duties on e-commerce in Europe, the consequences of which are being closely monitored.

The ongoing conflict in the Persian Gulf has further delayed the resumption of Cathay flights to Middle Eastern countries. Daily passenger flights to Dubai and four weekly flights to Riyadh have been postponed until the end of October, and the date for resuming cargo flights to Riyadh is still under review.

Due to rising oil prices, fuel surcharges were increased from August 1, marking the first hike since April. Previously, surcharges had been reduced several times thanks to a biweekly review process implemented since May.

With restrictions in the Middle Eastern market, India has become one of the key trade destinations. In June, Cathay Cargo representatives participated in the India International Cargo Show (IICS) in New Delhi. There is a noted increase in demand for air freight connecting Indian businesses with major international markets. India's positive growth trend is supported by increased production, exports, infrastructure development, and demand from sectors such as pharmaceuticals, perishables, automotive, electronics, and e-commerce.

For Cathay Cargo, this creates opportunities to support clients who require reliable connections between manufacturing centers in the SAMEA region, Hong Kong, mainland China, and other global markets.

Looking ahead, Cathay Pacific Cargo expects to maintain stable cargo flows across its network, supported by strong demand for server racks and chips for artificial intelligence development. The company is also monitoring the potential impact of new customs duties on e-commerce flows following the introduction of new rules for low-cost imports into Europe, which could affect cargo volumes from mainland China.