Cathay Pacific Cargo: 4Q2019 ‘looks promising’, but 1H2020 expected to be ‘weak’

    Cathay Pacific Cargo head of cargo global partnerships James Conlin, via the carrier’s official ‘Cargo Clan’ newsletter, stated (28-Nov-2019) the airline’s performance “picked up” since Sep-2019, but performance remains below the level of 4Q2018. Mr Conlin also stated:

    • 4Q2019 “looks promising” with “positive momentum” in Oct/Nov-2019. The improvement was driven by several charter operations for consumer product launches, the ‘Singles’ Day’ event in China on 11-Nov-2019 and restocking ahead of Thanksgiving and Christmas;
    • Mr Conlin described ‘Singles’ Day’ as “an extraordinary show of Chinese consumer power”, which “appeared to shrug off the impact of the trade war”;
    • Manufacturing indicators picked up in Oct-2019 for most countries, including South Korea, Germany and the US;
    • Mr Conlin noted “positive inklings” of a trade agreement between China and the US, but noted “uncertainty persists as trans Pacific trade tensions have once again escalated in recent days”;
    • Cathay remains “cautiously optimistic” about 2020, but expects 1H2020 to be “weak”.