Cathay Pacific to allocate half of A321neo order to budget carrier

Airbus A350-941 B-LRX Cathay Pacific AirwaysAirbus A350-941 B-LRX Cathay Pacific Airways

SYDNEY (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd said on Friday it would allocate half of its order for 32 Airbus SE A321neos to its recently-acquired low-cost carrier HK Express as it looks to grow in the budget market.

The flagship Hong Kong airline has taken a financial battering from a fall in demand due to months of sometimes violent pro-democracy protests in the Asian financial capital, and last month lowered its full-year profit guidance.

Cathay plans to maintain its A321neo delivery schedule, with the first of the planes being delivered next year.

Regional arm Cathay Dragon, which had initially been poised to receive all 32 A321neos, will get 16 between 2020 and 2022, Cathay said in a statement, adding the following 16 will go to HK Express from 2022 onward.

Cathay in July completed the purchase of HK Express from cash-strapped Chinese conglomerate HNA Group HNAIRC.UL, giving the premium carrier its first foothold in a rapidly growing budget travel market in Asia.

Reuters

Photo Rob Vogelaar