Hong Kong's Cathay Pacific announced on Wednesday that it plans to purchase at least 30 Airbus A330-900 aircraft in a deal estimated at $11 billion, aiming to bolster its post-Covid recovery and restore passenger numbers to pre-pandemic levels in the coming year. The airline disclosed this move alongside its financial results for the first half of the year, which showed a decline in profits, marking the first profitable year since 2019 due to increased post-Covid travel demand. Cathay Pacific did not reveal the exact purchase price but mentioned it had secured substantial discounts from Airbus on the initial list price of around HK$85.8 billion (US$11 billion). The new aircraft are slated for delivery by the end of 2031.
In a filing to the Hong Kong stock exchange, Cathay Pacific confirmed the agreement to buy 30 Airbus A330-900s, with an option to acquire an additional 30. The airline currently operates a fleet of over 230 primarily passenger aircraft. The new acquisitions are intended to replace existing mid-size widebody aircraft and support future expansion. Cathay Pacific reported that its passenger numbers have recovered to 80% of pre-pandemic levels and aims to fully recover by early 2025. The airline is also on course to restore its pre-pandemic flight levels by the first quarter of 2025.
Cathay Pacific had initially targeted a full recovery by the end of 2024 but extended this to early 2025. The airline is actively recruiting and training staff to meet the growing demand for travel. This recruitment drive follows a series of flight cancellations over the Christmas and New Year period, attributed to an underestimation of pilot requirements during Hong Kong's seasonal flu peak. The airline's profit for the first half of the year fell by 15% to US$463 million, with increased operational costs due to more flights. However, total revenue rose by nearly 14% to US$6.4 billion, driven by both travel demand and a robust cargo business. Cathay Pacific also announced it will pay a first interim dividend of HK$0.2 per share to ordinary shareholders within two months. Shares in the company declined by over 1% during afternoon trading.
