New Cathay Cargo chief upbeat on prospect for 2026 despite headwinds

Cathay Pacific’s new director of Cargo is upbeat on the company’s prospects in 2026 despite headwinds in the e-commerce segment, triggered by the removal of the de minimis tariff exemption for small-value goods entering the US.

Dominic Perret, who has succeeded Tom Owen in the post, said the Hong Kong-based airline had ended last year in a stronger position than might have been anticipated at the outset.

Cathay Cargo carried more than 1.6 million tonnes of cargo in 2025, up 9% on the previous year, its transpacific loads holding up while the fourth-quarter peak, especially, was more robust than anticipated, he noted.

“This allows us to enter 2026 with a cautiously optimistic outlook. However, we are still operating in a very uncertain environment. We face ongoing risks to our business from the global geopolitical situation and associated macroeconomic impacts. But we also see clear opportunities - the growth of air cargo demand for the critical infrastructure for data centers alongside the ‘AI boom’ and the continued strength of Asian manufacturing hubs – notably in Southeast Asia and Taiwan, China.”

Higher-Yielding, Specialized Cargo

Many of the forces that shaped the industry in 2025 remain, Perret noted.

“We’ve started the year with two more tariff stories. From 1 January, Mexico has put tariffs ranging from five to 50% on goods produced in China and other Asian countries, and Europe is adding a €3 fee to low-value packages entering the bloc from July. Neither is positive for air cargo, and the e-commerce we carry, but our business model will continue to help us be resilient.”

He continued: “We have a strong network, and we can adjust capacity across it in response to demand, as we did last year, strengthening our network in Southeast Asia and adding a seasonal freighter service to Madrid, for example. The ability to carry all types of specialized cargo also continues to be a differentiator for us,” a reference to higher yield verticals, such as pharmaceuticals or live animals.”

Improving Customer Experience

2026 sees Cathay Pacific Cargo introducing “a refreshed strategy and starting on our next five-year plan,” Perret explained.

“So much of our focus will be on improving the experience for our customers. We will continue to enhance the digital experience of the freight forwarders we work with. For example, we are currently in the midst of rolling out significant improvements to the Manage Booking function on our website so customers can oversee and modify their bookings and make any changes they need themselves.”

This change has been introduced in Taiwan and the Southwest Pacific already and will progressively be rolled out across the rest of the network.

Perishable Imports

Developing intermodal links to Hong Kong’s Greater Bay Area (GBA) and in particular, to serve the market for inbound cargo, is also high on Cathay’s agenda.

The GBA comprises nine megacities and is reputed to be the largest and most populated urban area in the world, with a total population of approximately 86 million. In the fourth quarter of last year, the airline inaugurated its Air-Land Fresh Lane for perishable imports into the GBA.

“The GBA is a big consumer market, and the through-air waybill to Zhuhai simplifies and expedites cross-border import processes. A highlight last year was the 150 tonnes of Chilean cherries we flew to Hong Kong, which arrived here early in the morning and were being sold in the wholesale markets in the GBA the same evening. We’ll see more cherries, this time from Tasmania, arriving before the Chinese New Year. The potential for perishable shipments into the GBA is huge, and we’ll continue to develop these links.”

Cathay is also looking at intermodal connectivity across its network and beyond and is poised to announce a new trucking partner in Europe.

Again, this is about improving Cathay’s customer proposition by extending its network reach, Perret observed, making it easier to sell from and to places which the airline does not serve by air.

“So, a lot is happening and a lot of positive change we are focused on delivering this year,” he concluded.