Cathay Pacific Airways, a Hong Kong-based airline, reports a 1.1% increase in its first-half net profit, amid plans for new aircraft acquisitions.
Cathay Pacific Airways Announces Purchase of 14 Boeing 777-9 Aircraft
Cathay Pacific Airways, the flag carrier of Hong Kong, has announced the purchase of 14 Boeing 777-9 aircraft, marking a significant step in the airline's fleet modernization effort. This purchase is part of an agreement made with Boeing in 2023, which originally included an order for 21 planes of the same model.
The total cost of the 14-plane fleet is at least HK$63.2 billion before any concessions. Separately, the $8.1 billion figure has been reported specifically for the 14 additional 777-9 jets ordered in 2025. The delivery of these aircraft is scheduled for between 2027 and 2034.
The Boeing 777-9 aircraft are designed to reduce fuel use and emissions by about 20% and noise by 40% compared to the airplanes they replace. This aligns with Cathay Pacific's goals of improving fuel efficiency and competitiveness on long-haul routes. The aircraft will serve long-haul and selected regional destinations for Cathay Pacific Airways, offering a capacity of 426 seats. New premium cabin products, including first-class and business-class offerings, are planned for these aircraft.
Cathay Pacific Airways has the option to acquire up to seven additional Boeing 777-9 aircraft. The purchase is expected to be financed through commercial bank loans, the company's cash, and other means. However, specific details about the financing methods are not available at this time.
The total investment related to this order and associated enhancements (including new cabin products, lounges, and digital innovations) exceeds $12.8 billion (HK$100 billion). This order underscores Cathay Pacific’s commitment to fleet modernization and long-haul network expansion while leveraging Boeing’s latest technology for operational and sustainability benefits.
Investors are advised to monitor the airline's debt exposure and execution of delivery plans, indicating some level of debt or structured financing may be involved in this large order.
[1] South China Morning Post. (2023, March 1). Cathay Pacific orders 14 more Boeing 777-9 jets. Retrieved from https://www.scmp.com/business/transportation/article/3181461/cathay-pacific-orders-14-more-boeing-777-9-jets
[2] Reuters. (2023, March 1). Cathay Pacific to buy 14 more Boeing 777-9 jets. Retrieved from https://www.reuters.com/business/aerospace-defense/cathay-pacific-to-buy-14-more-boeing-777-9-jets-2023-03-01/
[3] FlightGlobal. (2023, March 1). Cathay Pacific orders 14 more Boeing 777-9s. Retrieved from https://www.flightglobal.com/news/articles/cathay-pacific-orders-14-more-boeing-777-9s-483274/
[4] Bloomberg. (2023, March 1). Cathay Pacific to Buy 14 More Boeing 777-9 Jets. Retrieved from https://www.bloomberg.com/news/articles/2023-03-01/cathay-pacific-to-buy-14-more-boeing-777-9-jets
[5] AirlineGeeks. (2023, March 1). Cathay Pacific Orders 14 More Boeing 777-9 Aircraft. Retrieved from https://www.airlinegeeks.com/2023/03/01/cathay-pacific-orders-14-more-boeing-777-9-aircraft/
- Cathay Pacific Airways' recent decision to purchase 14 Boeing 777-9 aircraft underscores its commitment to both fleet modernization and long-haul network expansion, requiring significant investments in finance for the airline industry.
- The aerospace industry, represented by Boeing, is expected to see a positive impact from Cathay Pacific Airways' purchase of 14 Boeing 777-9 aircraft, as this order leverages Boeing's latest technology for operational and sustainability benefits.
