Cathay Pacific Airways has said that it has reached an agreement with European manufacturer Airbus to delay the delivery of its latest A350s and A321neos, as well as being in advanced talks with Boeing regarding the deferral of its 777-9 orders.
According to the airline, its 12 A350s currently on order to be delivered by 2021 will now be delivered over the next three years instead, while its 32 on-order A321neos will arrive over the next five years, instead of three.
Cathay Pacific did not release exact details on the number of planes to be delivered each year, nor did it mention whether the number of planes currently on order will be reduced.
The airline was also expecting a delivery of 21 Boeing 777-9s by 2024, however it is believed that no delay deal has been struck with Boeing as of yet.
On a notice lodged on the Hong Kong Stock Exchange, Cathay Pacific noted, “This deferral of deliveries is expected to produce cash savings to the Cathay Pacific Group in the short to medium term.”
The airline stated last week that it was expecting to report a US$1.3 billion loss for the first half of 2020, including impairment charges on 16 aircraft, although the company stated it expected full-year results to be “materially worse” than this.
It has also reported that it has reduced its monthly cash burn from around US$387 million to US$194 million, while maintaining a reduced flying capacity schedule.
The airline also was recently granted a US$5 billion bailout package from the Hong Kong government, with additional capital coming in from existing shareholders.
