BUSINESS

Cathay Cargo Expands Southeast Asia Capacity as Manufacturing Shifts

Published: Feb. 11, 2026 7:57 p.m. GMT+8

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Cathay Cargo has expanded its air freight capacity into Southeast Asia to keep up with a manufacturing shift toward the region, a senior executive said, as changing trade routes and tariff policy uncertainty reshape global logistics.

During a recent group interview, James Evans, General Manager Commercial at Cathay Cargo, identified Southeast Asia as a primary engine of the company’s growth, saying that the combined Southeast Asia and Oceania market has become the carrier’s third-largest market by revenue after Hong Kong and the Chinese mainland.

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Cathay Cargo has expanded air freight in Southeast Asia, now its third-largest revenue market, due to shifting manufacturing bases and trade routes.
Asia-Europe and intra-Asia air cargo demand grew over 10% in 2025, while Asia-North America demand dropped 0.8% amid changing tariffs.
Despite regulatory challenges, growth is fueled by Southeast Asia's tech sector, e-commerce, and expanded network using 234 passenger planes and 20 freighters.

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Who’s Who

Cathay Cargo: Cathay Cargo is expanding its air freight capacity in Southeast Asia, driven by a manufacturing shift to the region. This market, combined with Oceania, is now its third-largest by revenue. The company is adapting to a volatile trade environment by adjusting its network to follow manufacturing footprints, especially for high-tech and consumer goods. While maintaining significant capacity on major transpacific routes, it's leveraging its passenger and freighter fleet to serve 13 destinations in ASEAN countries.

Cathay Pacific: Cathay Pacific, through its cargo arm Cathay Cargo, is expanding air freight capacity into Southeast Asia due to a manufacturing shift. Southeast Asia and Oceania is now its third-largest market by revenue. The airline utilizes its 234 passenger aircraft and 20 Boeing 747 freighters to serve 13 destinations in the region. Cathay Cargo is adapting to changing trade routes, tariff uncertainties, and growing e-commerce demand.

HK Express: HK Express is an airline whose passenger aircraft's belly capacity is leveraged by Cathay Cargo to expand its air freight network. HK Express, alongside Cathay Pacific, contributes to the fleet of 234 passenger aircraft utilized for cargo operations.

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What Happened When

2025：: Global air cargo momentum shifted from Asia-North America routes to Asia-Europe routes amid rising tariff pressures, with Asia-North America route demand falling 0.8% year-on-year, and Asia-Europe and intra-Asia routes demand rising 10.3% and 10%, respectively.