Hong Kong carrier Cathay Pacific Airways Ltd (國泰航空) yesterday said that it would buy at least 30 Airbus SE A330-900 aircraft in a deal valued at US$11 billion as it looks to build on a post-COVID-19 recovery and reach pre-pandemic passenger numbers next year.
The firm made the announcement as it reported a drop in profit in the first half of the year, having moved into the black for the first time in four years last year thanks to a pickup in post-pandemic demand.
Cathay did not disclose the total price of the planes, but said it had received “significant price concessions” on the basic value of approximately HK$85.8 billion (US$11 billion) from the European company.
Photo: Bloomberg
The new planes are expected to be delivered by the end of 2031.
Cathay said it has also “secured the right to acquire 30 additional Airbus A330-900 aircraft.”
The airline said it already had a fleet of more than 230 mostly passenger aircraft.
“The aircraft will progressively replace the company’s existing fleet of mid-size widebody aircraft and enable future growth,” Cathay said in a statement.
The airline’s passenger count has reached 80 percent of its pre-pandemic levels and it hopes to hit 100 percent early next year, it said.
Cathay had earlier vowed to return to 100 percent pre-pandemic passenger flight levels by the end of this year, but in March pushed back the target by up to three months.
The airline is in the process of recruiting and training “that is driving our rebuild and the addition of more flights and destinations for our customers to cater for the strong demand for travel,” it said.
Cathay said profit attributable to shareholders slipped 15 percent year-on-year to US$463 million in the first half, adding that costs had increased from operating more flights.
However, total revenue in the period increased nearly 14 percent to US$6.4 billion, driven by the pickup in travel demand and a strong cargo business, it said.
The airline proposed paying a first interim dividend of HK$0.20 per share to ordinary shareholders in two months’ time, it added.
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