Cathay Group reported strong traffic growth in February 2026, with momentum from January extending through the Lunar New Year peak, driving a sharp increase in passenger volumes across both full-service and low-cost operations.
The group carried more than 3.2 million passengers in February, up 24% year-on-year, and recorded a new single-day high of around 128,000 passengers on 14 February.
Chief Customer and Commercial Officer Lavinia Lau said demand was supported by strong outbound travel from Hong Kong and the Greater Bay Area, alongside resilient inbound long-haul traffic and a rebound in business travel towards the end of the month.
However, she cautioned that geopolitical volatility – particularly in the Middle East – is beginning to impact operations, with the group suspending passenger and cargo services to Dubai and Riyadh until the end of April, while redeploying capacity to European routes including London and Zurich.
Cathay Pacific carried 2.56 million passengers in February, up 24.3% year-on-year, with ASKs increasing 16% and load factor improving to 85.6%.
Growth was driven by strong short-haul leisure demand during the holiday period, alongside improving long-haul inbound traffic and a rebound in premium cabin bookings as business travel recovered late in the month.
Year-to-date, passenger numbers are up 17.4%, with capacity up 15%.
Cathay Cargo carried 7% more cargo year-on-year in February, with tonnage rising to 127,442 tonnes, although volumes declined sequentially due to typical Lunar New Year seasonality.
Demand remained supported by pre-holiday shipments across the Greater Bay Area, alongside continued strength in specialist products such as secure cargo and live animal transport.
Cargo volumes for the first two months of the year are up 6%, with capacity increasing more modestly.
HK Express carried 730,000 passengers in February, up 24.7% year-on-year, with load factor rising sharply to 86.2%.
Demand was particularly strong on North Asia routes, especially South Korea, as well as Southeast Asia and Mainland China, with traffic growth outpacing capacity increases.
Year-to-date, passenger numbers are up 15.6%, reinforcing the role of the low-cost segment in driving group volume growth.
HSBC analyst Parash Jain said the group has delivered a “strong start” to 2026, with January–February RPK growth of 16% outpacing capacity growth of 15%, resulting in a 1.2 percentage point increase in load factor to 83.6%.
He attributed the performance to robust outbound leisure demand, a rebound in business travel and healthy long-haul inbound traffic, while cargo trends remained supported by pre-holiday demand despite seasonal softness later in February.
Looking ahead, Jain noted that bookings remain strong across Asia, but warned that the operating environment remains volatile due to the Middle East conflict.
He added that Cathay’s decision to suspend services to Dubai and Riyadh, while reallocating capacity to Europe, should support both traffic and yields, as airlines capture redirected demand flows.
At the same time, elevated fuel prices and shifting consumer behaviour may favour short-haul travel and low-cost carriers—potentially benefiting both Cathay Pacific and HK Express.
Jain reiterated a preference for Cathay over China’s “Big Three” airlines, citing their limited ability to pass through higher fuel costs and ongoing competitive pressure from high-speed rail.
Cathay’s February performance highlights the continued strength of Asia-Pacific demand recovery, particularly in leisure and regional markets, while also demonstrating the group’s ability to dynamically redeploy capacity in response to geopolitical disruption. With yields supported by redirected traffic flows and a growing contribution from its low-cost arm, Cathay appears relatively well positioned compared with mainland Chinese peers as volatility in fuel and geopolitics persists.