The carriers informed customers in a letter that it would impose a General Rate Increase (GRI) of HKD18 (US$2.31) per kg on the base rate of all the Block Space Agreements for transpacific routes with effect November 15 until the end of the contractual period.
An increase of HKD7 per kg would be applied on all services departing Hong Kong to India on the same date, the cargo business said, reports London's Air Cargo News
The letter said the increase is to 'reflect the latest air cargo market situation in Hong Kong'.
Increases or re-negotiations of contract prices are not unusual, however, the approach varies from airline to airline with some preferring to form close relationships with customers.
Awery Aviation Software chief commercial officer Tristan Koch, who has worked for several airlines in the past, said: 'I cannot comment on Cathay Pacific policy - but given their financial situation every dollar counts so their action does not surprise me. Historically they may not have revisited pricing mid BSA contracts as a cultural thing.
'But, I know a lot of other airlines that would renegotiate mid term if the markets moved considerably. Don't forget in many cases the forwarder wanted to negotiate downwards as markets softened. So it works both ways.'
Another customer said it was 'unseen' for Cathay Pacific to no longer honour running contracts but added that current market conditions in Hong Kong were unprecedented.
Last year, the Cathay Pacific Group posted an operating loss of HKD$18.1 billion compared with a profit of HKD3.4 billion in 2019.
Meanwhile, most market observers are expecting this year's peak season to be one extremely busy.