Hi naren.iitr,
I am taking a guess at the answer.
When catalytic cracking of hydrocarbon occurs, an excess of hydrogen is required. These hydrogen molecules attach to the 'broken' hydrocarbon chains where clevage occured.
My guess is that the presence of oxygen (along with other elements) would cause side reactions such as H2O, and other derivatives. Also, most catalysts operate an an elevated temperature, and the presence of oxygen increases the possibility of a fire.
Its just a guess, and I hope this helps.
Sincerely,
Eugene