Cathay Pacific Airways has ordered four Boeing 777-300ER passenger aircraft and eight Boeing 777-200 Freighters.
The 12 new aircraft will be delivered to the airline between 2013 and 2016.
Cathay already operates 22 Boeing 777-300ERs on its key long-haul routes, and with the latest purchase will have another 28 on order for delivery up to 2015.
“The airline plans to retire the older aircraft in its fleet, including 21 Boeing 747-400s and 13 Airbus A340-300s, before the end of the decade as it progressively takes delivery of new-generation aircraft that will provide much greater fuel and operating cost efficiencies,” said the airline in a statement.
Between now and the end of the decade, Cathay is also spending more than HK$1 billion on new products and services, including a new Business Class seat and a HK$5.5 billion cargo terminal at Hong Kong International Airport which is due to open in early 2013.
This week, Cathay Pacific Group reported a profit of HK$2,808 million for the first six months of 2011, down from profit of HK$6,840 million in the first half of 2010.
Earnings per share fell by 58.9% to HK71.4 cents. Turnover for the period rose by 13.2% to HK$46,791 million.
Chairman Christopher Pratt said: “After an exceptionally strong 2010, in which we made record profits, 2011 is proving to be more challenging.
“High fuel prices are increasing costs and recovering them through higher tariffs may affect demand. The outlook for the world economy is uncertain and a return to recessionary economic conditions would also affect demand and possibly average price levels.
“2010’s strong performance enabled us to rebuild our balance sheet. Our financial position is strong. We remain in a good position to deal with increased operating costs and the economic uncertainty with which we are faced and to reinforce Hong Kong’s position as a leading international aviation hub.
“The current high fuel prices and economic uncertainty are a reminder that we operate in a challenging and unpredictable industry and accordingly must continue to manage our finances prudently.”
by Bev Fearis