How was business in 2024?

When I started in the role in September 2023, our customers were saying that the market was flat, and there was a slight air of doom and gloom, which all seems a bit odd now. The start of this year was not forecast to be all that great either. But then as 2023 crept to an end, there was a significant pick-up in demand for air cargo, underpinned by e-commerce. Reflecting on the past 12-18 months, e-commerce has really been the story for the whole industry. 

There are, though, mixed reports about the intensity of the peak. How has it been?

I’m aware some people have been saying, “oh, there hasn’t really been a peak”. Not true. There’s absolutely been a peak. The difference is that we had thought there’d be a mega peak. But actually within that, demand has been stronger for longer than usual. Historically, the surge really happens later in Q3, but we saw a higher-than-expected demand over the summer months, and there were definitely early movements of goods. One of our customers told me they were moving Christmas lights in spring, which apparently was unusual. We weren’t the only ones forecasting a mega-peak, it appears. But it’s been strong. This year we hit our highest weekly results weeks and weeks before we did in 2023. 

How did the year start? 

One of the big preoccupations at the start of the year for us was the IATA World Cargo Symposium, which put Hong Kong and Cathay Cargo as host carrier in the spotlight. It was so important to us that we showcase Hong Kong and make sure everyone who was visiting from across the world had a thoroughly enjoyable time. It felt as if there was a lot of pressure, a lot of visibility, but it was a triumph. I believe this World Cargo Symposium was a record-breaking event in terms of attendance, and quite possibly the biggest ever drinks bill. I was so pleased that there was so much positivity and rave reviews. And that wasn’t just about the symposium, but also positivity for Hong Kong. I think it was a really important moment for us to remind the industry about our and this great city’s revival. 

Just how important is Hong Kong to the business?

Very. And it will continue to be, which is why we placed our order last year for six Airbus A350F freighters. It was great that Hong Kong retained its position as the number one international air cargo hub, a record it has maintained for 13 out of the past 14 years. I have every expectation that this calendar year Hong Kong International Airport (HKIA) will not only occupy the same position, but open up the gap. The end of November saw the activation of the Three Runway System at HKIA, which gives us the capacity to grow, and for Hong Kong to maintain and develop its status as the world’s top air cargo hub and the gateway for the Greater Bay Area.  

Could you outline some other highlights of the year?

Our Corporate SAF Programme has gone from strength to strength, and we’re very glad to have such strong and similarly committed partners. This year saw very big deals with Kuehne+Nagel and DB Schenker and that’s very material, because we want to be a leader in this field. There is a great deal of focus on ESG and only through collaboration can we address the climate crisis. Those two deals, along with earlier commitments from major partners including the Dimerco Express Group, Kintetsu World Express, Yusen Logistics, and the Lenton Group, which manages Linex our exclusive GHA for the Cathay Courier solution, reflect how as an industry we’re looking at solutions and joining the pieces together. I hope and expect that we can build on the achievements so far and as momentum builds, we want to make sure we are playing a vital role for the future, by connecting the SAF value chain to scale up the supply and demand, as we go greener together with our strategic suppliers and global cargo partners.  

What about on the operational side?

Having rebranded all of our special shipment solutions since last year, the refresh programme of individual solutions continued this year to include Cathay Expert and Cathay Courier. We take the view that if you stand still, you’re going backwards. The refresh for the latter now includes the facility to track at piece level in partnership with our partner, Linex. Part of the refresh programme is also about showing what we can do, and to find new ways to stand out and be different in the market, so there are new videos for the refreshed solutions too. 

How is the brand developing?

One of our big stories of the year was the successful delivery of two giant pandas into Hong Kong, which were gifts from the Central Government. The amount of coverage these two VIPs (Very Important Pandas) generated was phenomenal. It’s no accident that we were ready with videos and stories and engaging content on socials and so on, because we now have a full brand marketing team in place.  With their help we’re definitely raising our profile and being more understood by a wider audience about what we do and – that We Know How. And we’ve also started to really engage with our customers and the industry at events across the globe, taking our brand message and exhibition stand this year to events including the LogiPharma in Lyon, TIACA Air Cargo Forum in Miami, Air Cargo China in Shanghai and Asia Fruit Logistica here in Hong Kong, to name a few. 

How was progress on Cathay Cargo’s digitalisation programme?

We’ve achieved a lot and we still have a long way to go. Quite a lot of what we’re doing with digitalisation is improving processes, and that makes a massive difference in our business, because there is a huge amount of process in air cargo. Our focus ultimately is on streamlining and making things easier for our customers and, by extension, their customers. 

What we’ve done this year is set out the roadmap for our digital hub, which I think is going to be an absolute industry leading digital experience that will be progressively rolled out over the coming years. Our focus is to ensure our customers are at the heart of our digital experience design and that’s why our our digital team have been out speaking to a range of customers about their needs. 

What’s your message to customers as we close out the year?

Thank you is the key one. Although it’s been a successful year, it’s not been without challenges, and while our Customer Net Promoter Scores (NPS) have been consistently high we are definitely not resting on our laurels. The scores we receive are a major motivator for me and the team. I am very pleased that our customers are very direct with us, and long may that continue because we want to make sure that we’re doing the best we can in their interests. So the positive scores – and industry awards – don’t go to our heads, they keep us working to keep that score moving up. 

And let’s be fair, we don’t get it perfectly right every time, but we hope our customers see what we’ve done and the lengths we go to and feel that we are a premium carrier  they can trust and they can do business with not just now, but over the long term. We feel the same way about them. 

How about the coming year?

We can’t be sure what the year ahead has in store for us. However, we remain confident and mindful of everything that’s been achieved in the past year, while knowing that we’ve just got to keep on top of our game and be prepared for any change in circumstances. I’m confident that we can adapt in the same way we’ve dealt with challenges and headwinds in the years past. Whatever happens, we look forward to delivering the very best for our customers.