01 Aug 2025
#1 August 2025: China Aviation Industry Newsletter
Cathay Group Reports Strong Passenger and Cargo Growth
The Cathay Group recorded solid growth in both passenger and cargo traffic for June 2025, with Cathay Pacific and HK Express jointly carrying about 2.9 million passengers—up 23.3% year-on-year. Cathay Cargo transported over 130,000 tonnes of cargo, a 6.3% increase from June 2024.
Cathay Pacific saw a 25.2% rise in passengers, setting a post-pandemic daily record of over 90,000 travellers on June 28, with a peak load factor of 93.4%. Strong demand was driven by inbound student traffic from the UK and the US, and newly launched routes to Rome and Munich. Southeast Asia and Mainland China also showed increased regional traffic, despite weaker demand for Japan. Cargo volumes grew particularly on routes from Southeast Asia and Taiwan to the Americas, supported by high-tech electronics and pharma shipments.
China Aircraft Leasing Group (CALC) Leases New Airbus A320neos to Air Cairo
China Aircraft Leasing Group (CALC) announced that it has signed a lease agreement with Air Cairo, one of Egypt’s leading airlines, for two brand new Airbus A320neo aircraft powered by CFM LEAP-1A engines. The aircraft are scheduled for delivery in Q2 2026, further expanding CALC’s presence in the EMEA region and supporting Air Cairo’s strategic fleet growth and route expansion plans.
“We are proud to support Air Cairo’s growth plan with advanced, fuel-efficient aircraft and to deliver their first Airspace cabin solution,” said Ms. Winnie Liu, President and Chief Commercial Officer of CALC. “We look forward to building long-term close partnership with Air Cairo through more transactions and collaborations in the future.”
China Southern Airlines to Connect Guangzhou and Riyadh
China Southern Airlines is set to launch a new flight route between Guangzhou and Riyadh starting in September 2025, in partnership with the Air Connectivity Program, the Saudi Tourism Authority, and Riyadh Airports Company, reported SPA.
The three-weekly route will add over 86,000 seats annually, operating Airbus A330-300 aircraft to meet growing demand for travel between Saudi Arabia and China. The new route will strengthen tourism and trade between the two countries.
Acumen’s Take
On Cathay Group’s Strong Passenger and Cargo Growth
Cathay’s performance underscores the resilience of Hong Kong’s aviation sector as it reasserts itself as a global hub. The growth in long-haul demand—particularly student travel—and pharma-linked cargo volumes aligns with macro recovery patterns in high-value and seasonal traffic. The high 93.4% load factor reflects disciplined capacity management across expanding networks.
On CALC Leasing A320neos to Air Cairo
This deal marks a strategic move by CALC to deepen its footprint in the African and Middle Eastern leasing market. For Air Cairo, the inclusion of fuel-efficient A320neos aligns with regional ambitions for fleet modernisation and sustainable growth, particularly as Egypt scales up its tourism infrastructure and intra-regional connectivity.
On China Southern’s Guangzhou–Riyadh Route Launch
China Southern’s new service to Riyadh supports the broader geopolitical and economic alignment under the Belt and Road and Saudi Vision 2030 frameworks. This new corridor opens additional commercial potential for bilateral trade, religious tourism, and cargo flows between two strategically significant aviation markets.
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