Cathay Cargo revenue jumps 23.9% as AI hardware fills Hong Kong freighters

Cathay Cargo grew first-half revenue by 23.9% and lifted tonnage 9% across January to September, and the carrier credits much of that to the unglamorous innards of the AI economy: servers, CPUs and GPUs moving through Hong Kong.

Dominic Perret, a year into his job as Director Cargo after more than 26 years at Cathay, laid out the numbers at the TIACA Air Cargo Forum in Miami in an interview with Reji John, Editor of STAT Publishing Group. His verdict on the year: volatile, but strong. His ambition for the airline is framed deliberately — "not the biggest but the best" air cargo carrier.

The AI trade is doing the heavy lifting. Data-centre hardware has pushed yields and volumes simultaneously, a combination air cargo rarely enjoys. Perret expects the boom to carry into 2027, which is a long runway by freight standards — roughly two more budget cycles for shippers to plan around.

What backs up the volume?

Diversification still matters, he argues. E-commerce, pharmaceuticals and perishables keep the network balanced when tech cargo wobbles.

The Greater Bay Area shows how. Cathay's Air-Land Fresh Lane gets Chilean cherries, Australian grapes and Norwegian salmon onto GBA market shelves the same evening they land in Hong Kong. Ferry connections to Dongguan add another routing option for importers chasing speed.

Fleet: freighters now, bellies later

The fleet plan runs on two tracks:

• 20 Boeing 747 freighters in operation today
• Eight Airbus A350Fs on firm order, the first arriving in the second half of 2028
• A newly leased A330 freighter from ATSG for regional routes
• 35 Boeing 777-9s on order, adding belly capacity as they deliver

That's a two-front bet: dedicated capacity for the near term, belly hold for the long game. The A350F gap means the 747s carry the AI boom almost alone until 2028.

Where Cathay isn't flying

The Middle East tells a harder story. Cathay has suspended Dubai and Riyadh services since February. European freighter operations now make technical stops in Astana, and this winter in Navi Mumbai and Bengaluru — a routing adjustment that signals both range economics and a pivot toward South Asian demand.

Digital tools, and a message on fuel

On the technology side, Perret points to Manage My Booking for customers, AI-assisted lithium battery screening, and an AI compliance tool covering import and export controls. Next on the list: agentic AI in customer service. The screening tool matters commercially — lithium battery traffic keeps growing, and regulators keep tightening.

He sees 2027 opportunities across the Chinese mainland, Southeast Asia and India. His message to shippers is blunter: watch jet fuel costs and budget accordingly. Fuel remains the variable most likely to upset an otherwise bullish picture.

What does this change for shippers and forwarders? Capacity out of Hong Kong stays tight but reliable through 2028, GBA import lanes offer same-evening distribution, and India's rise is now visible in Cathay's own routings. Rates, as ever, will follow the fuel bill.