Cathay Pacific Airways Limited

Airfreight Institute

FIATA World Congress 2017

Kuala Lumpur

The Economics of Air Cargo: the current

situation, the trends, the challenges

Agenda

Cathay Pacific Cargo Update

Market Overview and Trend

The Challenges

Cathay Pacific Cargo Update

• Passenger Fleet Development:

CX Group Fleet

• Current freighter fleet:

– 14x Boeing 747-8

– 6x Boeing 747-400 ERF

Aircraft In Fleet On order

A320/1 23 0

A321 neo 0 32

A330 61 0

B777 70 0

A350 18 30

B777-9X 0 21

Total 172 83

*From 26Mar17 ^ Seasonal service, from 2Jul17 to 27Oct17

Tel Aviv, Israel*

Barcelona, Spain^ Christchurch, New Zealand#

#Seasonal service, from 1Dec17 to 28Feb18, subject to

regulatory approvals

2017

2018

20172017

20182018

Our Destinations

111 Together with our sister company, Cathay

Dragon, we have an extensive cargo network

Europe

16*(5)

MEIA

14(9)

Mainland

China

21(5)N. Asia

13(4)

SE Asia

19(6) SW Pacific

9^(3)

Americas

18(14)

( ) shows the number of freighter destinations

(47)^Cathay Pacific seasonal passenger service to Christchurch, New Zealand will be operated from 1 December 2017 to 28

February 2018

#As of Sep 2017

*Cathay Pacific passenger service to Brussels, Belgium, Dublin, Ireland and Copenhagen, Denmark(Seasonal Service)

will be operated from 25 March 2018, 02 June 2018 and from 2 May 2018 to 12 October 2018 respectively

Cathay Pacific Group 2017 Interim Results Highlights

Cargo business

965,688tonnes

11.5%

Carried

HKD -2,051

million-681%

Profit Attributable to the

shareholders of Cathay Pacific

1.66HK$ cents

4.4%

Yield

66.2%4.0% pt

Load Factor

10,515HK$ million

11.7%

Revenue

CX Group

100'000

110'000

120'000

130'000

140'000

150'000

160'000

170'000

180'000

190'000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cargo YTD Tonnage Trend

2016 2017

To

n

Market Overview and Trend

Strongest first half year since 2010

Total International Market (Jan – Jul 2017)

FTK AFTK FLF (%-pt)2 FLF (level)3

11.8% 3.8% 3.5% 48.80%

Airlines have continuously rationalized the

freighter capacities

Improved share of world trade for Air freight

The recent outperformance of air freight relative to wider world trade reflected:

• The ability of air freight to allow firms to restock quickly at the start of upturns

• The sectors having higher air freight share are growing faster

• Impact on ocean due to Hanjin bankruptcy, cyber attack, ocean alliance shift

Strong throughput growth in Asia

Airlines are increasingly confident about the

outlook for demand and yields

* IATA survey of heads of cargo

The Challenges

New Technology

vs.

Safety

Cathay Pacific Airways LimitedSource : www.tesla.com

New Customer Requirements

Source: https://www.cbinsights.com/research/pharma-drug-startups-most-active-investors/

www.iata.org/ceiv-pharma

The Economics

2010

550Kgs

2017

400Kgs

Others

New additional services

Equipment Positioning Cost