Cathay Pacific defers A350 and A321neo deliveries, plans to defer Boeing 777-9s
Cathay Pacific reached a deal with Airbus on Wednesday to delay the delivery of its order of A350s and A321neos. The airline is also in talks with Boeing to defer the delivery of its 777-9 order in order to preserve cash.
Reuters reports the Airbus deferrals are for orders of a total of 65 aircraft as per an investor presentation that the airline made in November 2019. The order of 12 A350s, originally due to arrive in 2020 and 2021, are now scheduled to arrive from 2020 up to 2023. The 32 A321neos were originally scheduled to be delivered from 2020 to 2023, but this has been extended further from 2020 to 2025.
Sign up for the free daily TPG newsletter for more airline news!
A new delivery date has not yet been agreed for the 21 Boeing 777-9s, which were originally scheduled for 2024. The 777-9 is the larger of the two "777X" variants Boeing has planned as part of its update to the widebody workhorse. The first of those variants, the 777-9, flew for the first time in Washington state in January.
As for Cathay Pacific, its order shake-up comes as the airline industry is suffering through the most significant downturn in demand since 9/11. As such, airlines around the world, especially weaker airlines or those that were already struggling before the pandemic hit, are having to make aircraft, route and staff cuts to save money and stay afloat.
In-depth: The Boeing 777 turns 25: All about the new Boeing 777X
"This deferral of deliveries is expected to produce cash savings to the Cathay Pacific Group in the short to medium term," the airline said in a prospectus with the Hong Kong Stock Exchange.
In April, the airline announced that it would reduce some fuel charges, which was ultimately good news for Cathay Pacific enthusiasts who book award tickets through American Airlines, Asia Miles and/or British Airways Executive Club.
Related: Stellar Service: Cathay Pacific (777-300ER) in Economy from Los Angeles to Hong Kong
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app