Cathay Pacific to expand fleet

Hong Kong-based Cathay Pacific Group's purchase of more Boeing aircraft will help cement Hong Kong as an international aviation hub at a time when Hong Kong airport's passenger volume, flight movements and cargo traffic are expanding, analysts said.

While delivering its 2025 interim results on Wednesday, Cathay Pacific Group said it would purchase 14 more Boeing 777-9 jets for $8.1 billion, marking its first transaction with the US aircraft manufacturer in 12 years.

Together with the new purchase, the carrier has committed to buying 35 aircraft of this type, and also retains the option to acquire seven additional planes. The aircraft are expected to be delivered in 2034.

With this order, the group's main carrier, Cathay Pacific Airways, has reportedly become one of the top buyers of the Boeing 777X, following Gulf carriers Emirates and Qatar Airways.

"As an international aviation hub, the Hong Kong airport should encourage Cathay Pacific Airways and other airlines to launch more flights out of and into Hong Kong so that Hong Kong can build a huge inter-airline transfer network," said Billy Mak Sui-choi, associate professor at Hong Kong Baptist University's Department of Accountancy, Economics and Finance.

Mak said the Three-Runway System, which commenced operations in November 2024, still has not achieved full-load utilization. The new runway, which stretches over 3,800 meters, is expected to enhance Hong Kong International Airport's (HKIA) capacity dramatically and enable it to handle up to 120 million passengers and 10 million metric tons of cargo annually by 2035.

"This network could be facilitated when the TRS achieves full-load status — by giving more time slots for airplane takeoffs and landings. Hong Kong's inter-airline transfer network could then be more comprehensive, which is matched by more flight frequency and less time required for connecting flights," Mak said.

Cathay Pacific Group Chairman Patrick Healy said the purchase of Boeing aircraft will support Hong Kong's status as an international aviation hub.

The announcement coincided with Cathay Pacific Group's reporting of a marginal increase in first-half profit, driven by increased passenger capacity and volumes albeit at lower yields, a resilient cargo business and lower fuel costs.

"I think it is positive as Cathay needs to update its fleet to remain competitive. At the same time, the new planes are more fuel efficient and should help in the unit fuel cost," Lorraine Tan, director of Equity Research (Asia) at US-based investment research and investment management services firm Morningstar, told China Daily.

Cathay Pacific Group is the flagship aviation conglomerate based in the Hong Kong Special Administrative Region with main carrier Cathay Pacific Airways, and subsidiaries such as HK Express and Cathay Cargo.

In the first half of this year, passenger volume at HKIA saw a 16.5 percent year-on-year growth to 29.4 million and flight movements increased 10.1 percent to over 192,000, according to Airport Authority Hong Kong. It also said cargo traffic expanded 1.9 percent annually to 2.4 million tons in the same period.