By Jamie Freed
SYDNEY (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd (HK:) stated on Wednesday it had reached settlement with Airbus SE (PA:) to delay the supply of A350s and A321neos and was in superior talks with Boeing Co (N:) about deferring its 777-9 orders.
The airline stated the A350s attributable to arrive in 2020 and 2021 had been now scheduled for 2020-2023 and A321neos anticipated from 2020-2023 would arrive from 2020-2025. It didn’t present additional particulars of the quantity anticipated annually.
“This deferral of deliveries is predicted to supply money financial savings to the Cathay Pacific Group within the brief to medium time period,” it stated in a prospectus for its HK$11.7 billion ($1.51 billion) rights problem lodged with the Hong Kong Inventory Trade.
Cathay had anticipated deliveries of 32 A321neos, 12 A350s and 21 777-9s by 2024, in keeping with a November 2019 investor presentation.
An Airbus spokesman stated his firm didn’t touch upon supply schedules for particular person airways. A Boeing spokeswoman stated her firm didn’t touch upon buyer discussions.
Most airways globally are attempting to defer new plane deliveries as they grapple with the downturn from the coronavirus pandemic, which has wrecked journey demand.
Cathay final week warned it anticipated to report a HK$9.9 billion loss for the six months ending June 30, together with impairment fees on 16 planes.
The airline stated on Wednesday that it had lowered its month-to-month money burn to about HK$1.5 billion from HK$2.5 billion to HK$three billion whereas sustaining a minimal flying schedule.
Nonetheless, it stated that there was no assurance journey would rebound to pre-outbreak ranges and that it anticipated its full-year outcomes to be “materially worse” and would come with the mark-to-market impression of gas hedging losses.
Cathay, which obtained a $5 billion rescue bundle from the Hong Kong authorities and shareholders together with the rights problem, stated it’d additional entry fairness and debt capital markets to strengthen its steadiness sheet.
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