Cathay Pacific poised to make first Boeing order in 12 years
[HONG KONG] Cathay Pacific Airways is poised to place an order for new aircraft from Boeing for the first time in 12 years, according to sources familiar with the matter.
The Hong Kong-based carrier’s latest aircraft purchase plan for an additional 777X jets could be announced as soon as Wednesday (Aug 6), the sources said, asking not to be identified because the discussions are private.
The plane purchase plan needs to be approved by its board of directors, and the composition of the airline’s order could change.
An order for Boeing jets would be a major boost for the 777X programme, which is still to be certified and is years late coming into service. Cathay’s last Boeing order was in 2013. Since then, the US planemaker has lost to rival Airbus on commitments amounting to about 150 jets.
A representative for Cathay did not immediately respond to a request for comment. A Boeing spokesperson declined to comment.
Boeing’s shares rose 1 per cent in after-hours trading. Cathay was trading 0.5 per cent lower on Wednesday ahead of its earnings announcement at 12 pm Hong Kong time.
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Boeing-related A shares rose on mainland China markets after Bloomberg reported on the purchase plan. Baoji Titanium Industry jumped as much as 6.2 per cent, while Avic Xi’an Aircraft Industry Group was up as much as 3.8 per cent.
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Cathay was one of the first airlines to commit to the 777X programme when it placed an order in December 2013 for 21 777-9s.
The carrier has also been closely studying the 787 Dreamliner, an aircraft type it does not operate, as well as additional Airbus A350s, according to the sources.
The climate around the latest round of plane orders has become more political with US President Donald Trump combining jet orders with trade deals.
New jets would help Cathay replace existing older-generation Boeing 777 aircraft and help support the growth that it forecasts coming from an expanded Hong Kong International Airport.
Cathay Pacific, whose major shareholders include Swire Pacific and Air China, operates a fleet of 236 aircraft: 73 Boeing planes and 163 Airbus jets. It has agreements to buy more than 110 new aircraft, according to its 2024 annual report.
Airbus has previously scooped up consecutive orders with Cathay for passenger widebody, single-aisle and freighter jets. BLOOMBERG
