But the Hong Kong airline remains bullish on its passenger service adding that it “expects continued stellar growth in passenger traffic in the coming months”, according to a report in The Standard, Hong Kong.

Said Cathay chairman Christopher Pratt: “We are facing increased competition and shippers are switching to marine transport due to the high price of fuel.”

Together with its wholly-owned subsidiary, Dragonair, the two airlines carried a total of 140,002 tonnes in March, a two percent drop year on year.

Cathay’s chief executive Philip Chen said: “Cargo is a very cyclical business. Cathay will see limited negative impact in the long term.”

Mr. Pratt also said the airline is “optimistic” about the third cargo terminal at Hong Kong International Airport and does not wish to see a further delay in its construction.