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

(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 government stated on Friday.

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

Lam stated the main target can 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 varieties being thought of.

The long-serving government, who will take over as chief government 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 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 though second-half outcomes are anticipated to enhance sequentially due to 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 yr has been on a downward development, however in comparison with a traditional yr it’s nonetheless at barely elevated ranges,” he stated. “There may be lots of uncertainty about 2023.”

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