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Cathay Pacific Airways expects to increase its cargo capacity by 15 to 20 percent next year despite a cloudy outlook for the industry, as cargo volume is set to recover from this year's decline caused by weak global trade conditions, reported Dow Jones Newswires.
The Hong Kong-based carrier has started to receive the 10 Boeing 747-8 freighters scheduled to be delivered by the end of 2012.
In late October, it received the first of the freighters, with another joining the fleet on Wednesday. The carrier expects another two to be delivered by the end of the year and the remaining six across 2012.
Cathay Pacific cargo director Nick Rhodes said the air cargo industry's outlook remains difficult and it would be a challenge to digest the new capacity without compromising on yield, a key measure of profitability.
"You can look at it as a threat that we have too much capacity, but it's also an opportunity for us to try some new destinations," Rhodes said.
The carrier is looking at adding more services to Sri Lanka, as well as destinations in China, India and in Central America.
In the worst-case scenario, the carrier can park some of its aircraft as it did during the economic downturn in 2008 and 2009, he said.
Cathay Pacific and its China-focused unit, Hong Kong Dragon Airlines, reported a 17.5 percent slump in cargo volume to 135,998 metric tonnes in October, the seventh consecutive decline.
Air cargo accounted for around 30 percent of Cathay Pacific's sales in the first half of this year.
"Cargo this year is certainly soft. It's not a strong as it had been last year," chief executive John Slosar said.
Rhodes said the usual peak in fourth quarter cargo shipments is unlikely to happen this year as the cargo loads in October and November have been good "but not as good as that of last year".
Cargonews Asia
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