Cathay Pacific defers deliveries of Airbus A350 and A321neo aircraft

Hong Kong carrier Cathay Pacific has reportedly entered an agreement with manufacturer Airbus to defer the deliveries of A350s and A321neo aircraft.

The decision follows as the airline deals with the decline in demand due to the coronavirus (Covid-19) pandemic.

In its 2019 November investor presentation, Cathay expected deliveries of 32 A321neos, 12 A350s and 21 777-9s by 2024.

According to the latest announcement, Cathay Pacific’s A350s aircraft will now be delivered in 2020-2023, Reuters reported citing the carrier. They were originally scheduled for delivery in 2020 and 2021.

The carrier also delayed the delivery of A321neos from 2020-2023 to 2020-2025.

However, the airline did not provide additional information on the number of aircraft expected for delivery every year.

Cathay Pacific has also reportedly held talks with manufacturer Boeing in relation to rescheduling its 777-9 orders.

In a filing cited by Reuters, the carrier said: “This deferral of deliveries is expected to produce cash savings to the Cathay Pacific Group in the short to medium term.”

Last month, Cathay Pacific announced a HK$39bn (5bn) in recapitalisation financing to maintain its competitiveness and operations amid the crisis.

In February, Cathay Pacific Airways stated that it expects a decrease in profits after it cancelled two flights for every five in February and March due to the outbreak.

In March, UAE-based Emirates also sought to delay the delivery of the remaining eight A380 double-decker jetliners ordered from Airbus as a result of the pandemic.