Cathay Pacific delays Airbus deliveries, in advanced talks with Boeing
HONG Kong's Cathay Pacific says it has reached agreement with Airbus to delay the delivery of A350s and A321neos and was in advanced talks with Boeing Co about deferring its 777-9 orders
HONG Kong's Cathay Pacific says it has reached agreement with Airbus to delay the delivery of A350s and A321neos and was in advanced talks with Boeing Co about deferring its 777-9 orders.
The announcement follows hard on the heels of the warning last week by the Hong Kong carrier that it expects to report a HKD$9.9 billion (US$1.28 billion) loss for the six months ending June 30, including impairment charges on 16 planes.
The airline says the A350s due to arrive in 2020 and 2021 are now scheduled for 2020-2023 and A321neos expected from 2020-2023 would arrive from 2020-2025. It did not provide further details of the number expected each year, according to Reuters.
'This deferral of deliveries is expected to produce cash savings to the Cathay Pacific Group in the short to medium term,' it said in a prospectus for its HKD11.7 billion rights issue lodged with the Hong Kong Stock Exchange.
An Airbus spokesman said his company did not comment on delivery schedules for individual airlines. A Boeing spokeswoman said her company did not comment on customer discussions.
The airline said on Wednesday that it had reduced its monthly cash burn to about HKD1.5 billion from HKD2.5 billion to HKD3 billion while maintaining a minimal flying schedule.
However, it said that there was no assurance travel would rebound to pre-outbreak levels and that it expected its full-year results to be 'materially worse' and would include the mark-to-market impact of fuel hedging losses.
Most airlines globally are trying to defer new aircraft deliveries as they grapple with the downturn from the coronavirus pandemic, which has wrecked travel demand.