Cathay Pacific Orders 32 Airbus A320 and A321neo Aircraft to Boost Fleet
Cathay Pacific has announced an “intention to purchase” 32 Airbus A320 and A321neo aircraft to expand and modernize its fleet. The airline highlighted in a press release issued on August 10, 2023, that the order would increase its new aircraft backlog to 70, with the 32 narrow-body jets scheduled to be delivered by 2029. According to a previous Bloomberg report, the Hong Kong International Airport (HKG)-based carrier was looking to lease 18 Airbus A321neo aircraft to be delivered between 2025 and 2027.
Cathay Pacific said that the 32 aircraft would be assigned to both Cathay Pacific and its low-cost subsidiary HK Express, “principally serving destinations in the Chinese Mainland and elsewhere in Asia”. However, the airline did not clarify whether it was purchasing these aircraft directly or on lease from an aircraft lessor.
Earlier on August 3rd, Cathay Pacific announced that it is nearing the final stages of an agreement aimed at bolstering its aircraft fleet with the addition of 18 leased Airbus A321neo planes. Sources familiar with the matter, as reported by Bloomberg, suggest that these 18 Airbus A321neo aircraft are set to be delivered through leases spanning the years 2025 to 2027. Based on Airbus’ Orders & Deliveries records up to June 30, 2023, the airline presently operates 11 aircraft of this specific model, with an extra unit allocated to its budget-friendly subsidiary, HK Express.
As per Ch-aviation.com data, within the fleet of 12, five are under Cathay Pacific’s direct ownership, while the remaining seven are leased from Bocomm Leasing, a subsidiary linked to Hong Kong’s Bank of Communications. This strategic move underlines Cathay Pacific’s commitment to modernizing and expanding its fleet to meet the evolving demands of the aviation industry.
Anticipated to release its comprehensive H1 2023 report on August 9, 2023, Cathay Pacific foresees positive results for the period. Lavinia Lau, the Chief Customer and Commercial Officer, highlighted the promising performance of the Cathay Pacific Group in early June 2023. This group encompasses HK Express and the cargo-focused Air Hong Kong. Lau attributed these improvements to the easing of quarantine mandates since September 2022, leading to increased operational capacity.
Lau explained, “Despite losses reported by some associates, mainly recognized three months in arrears and in some cases already disclosed by them, our Group’s performance has shown resilience.”
A strategic decision to reduce its stake in Air China from 18.13% to 16.26% will result in a non-cash gain of HKD1.9 billion ($243.3 million). This gain, announced in January 2023 as part of the airline’s annual financial report for 2022, will contribute to Cathay Pacific’s financial standing.