Cathay Pacific in talks on orders for medium-haul jets, freighters By Reuters



© Reuters. FILE PHOTO: Cathay Pacific aircrafts put together to take off on the airport, through the coronavirus illness (COVID-19) pandemic in Hong Kong, China, March 31, 2022. REUTERS/Tyrone Siu

(Reuters) -Hong Kong’s Cathay Pacific Airways (OTC:) Ltd is in talks with plane producers about orders for medium-haul plane and devoted freighters, a senior govt mentioned on Friday.

“Total we’ve got sufficient long-haul plane to fulfil Cathay Pacific’s progress plan,” Chief Buyer and Buyer Officer Ronald Lam mentioned throughout an analyst briefing, citing present orders for Airbus SE (OTC:) A350 and Boeing (NYSE:) Co 777X planes.

Lam mentioned the main target could be on buying extra medium-haul jets to function within the Asia-Pacific area in addition to devoted freighters, although he didn’t present the numbers or sorts being thought of.

The long-serving govt, who will take over as chief govt on Jan. 1, had raised the prospect of jet orders in an interview with Bloomberg final month.

The talks with producers come because the airline appears to be like to rebuild after being hit exhausting by greater than two years of robust passenger and quarantine guidelines in Hong Kong that ended solely lately.

The airline final week forecast a “substantial” annual loss although second-half outcomes are anticipated to enhance sequentially because of an uptick in journey and air cargo demand.

Lam instructed analysts that the passenger outlook was enhancing however that cargo demand and costs had weakened in comparison with an “distinctive” efficiency in 2021.

“The freight fee in comparison with final 12 months has been on a downward pattern, however in comparison with a traditional 12 months it’s nonetheless at barely elevated ranges,” he mentioned. “There’s lots of uncertainty about 2023.”

This month, Cathay mentioned it anticipated to function at 70% of its pre-pandemic passenger flight capability by the top of 2023, up from a deliberate 33% by the top of 2022, and aimed to return to full pre-pandemic capability by the top of 2024.

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