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Cathay Pacific Unveils Airbus Order as Lower Ticket Prices Trim Profit

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Published: Monday, 09 September 2024 16:50

The airline net profit in the first six months fell 15% from a year earlier 

Cathay Pacific said it expects to restore passenger flights to prepandemic levels by the first quarter of 2025. Photo: Lam Yik/Bloomberg News
Cathay Pacific Airways is set to buy Airbus AIR 0.24%increase; green up pointing triangle jets valued at US$11 billion, the Hong Kong flag carrier said as it posted a drop in first-half profit in part due to lower ticket prices.

The airline on Wednesday said net profit in the first six months fell 15% on the year to 3.61 billion Hong Kong dollars, equivalent to US$463.1 million. It attributed the fall to the “normalization of ticket prices.”

Revenue rose 14% to HK$49.60 billion, helped by passenger flights reaching 80% of prepandemic levels, which also boosted cargo capacity, it said. Yield, or the revenue earned per passenger, declined by 11%, given that more passenger flights are being added to the market, it added.

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Boeing Production Shows Continued Improvement

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Published: Monday, 02 September 2024 16:50

Boeing delivered 43 airplanes in July, a second straight relatively solid month for the jet maker as it works to ramp up production amid supply-chain glitches and in the wake of January's Alaska Airlines door-plug blowout.

That total included 32 737 jets, three fewer than Boeing delivered in June but higher than earlier in the year when it was delivering between 15 and 25 narrowbody planes a month. Deliveries included six 787s, four 767s and one 777 freighter. Boeing's backlog is now 5,477, down from 5,506 at the end of June.

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World’s Biggest Jet Maker Struggles to Fly Faster Than Boeing

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Published: Monday, 26 August 2024 16:48

Airbus was confident it could capitalize this year on a postpandemic surge in demand, but the world's biggest jet maker has suffered a change in fortunes.

At the start of 2024, Airbus had just smashed its record for annual orders, airlines were clamoring for more jets and production was ramping up. The company’s only significant rival, Boeing, was in an escalating crisis after a panel blew off a 737 midflight.

Since then, Airbus has been dogged by delays, prompting the company to cut its annual delivery guidance and defer a long-heralded production target. The company’s stock is now down more than 20% since it hit a record high in March.

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Boeing Is in Crisis. Airbus Is Struggling to Power Ahead.

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Published: Monday, 19 August 2024 16:47

World’s biggest jet maker has had a frustrating change in fortunes, having been confident it could capitalize this year on a postpandemic surge in demand Christian Scherer, head of Airbus’s commercial aircraft unit, has sought to ramp up production. ‘I thought we were going to be in a better place,’ he says. Christian Scherer, head of Airbus’s commercial aircraft unit, has sought to ramp up production. ‘I thought we were going to be in a better place,’ he says. 

When Christian Scherer took the job of running Airbus’s AIR -0.03%decrease; red down pointing triangle commercial aircraft division at the start of the year, the gig looked like a slam dunk.

The plane maker had just smashed its record for annual orders, airlines were still clamoring for more jets and production was ramping up. The company’s only significant rival, Boeing BA -0.15%decrease; red down pointing triangle, had been flung into a fresh and escalating crisis after a door-size panel blew off the side of a 737 midflight.

Since then, Airbus has been dogged by delays, prompting the company to cut its annual delivery guidance and defer a long-heralded production target. Orders during the first half of the year were less than a third of the intake in the same period of 2023, and the company’s stock is now down more than 20% since it hit a record high in March.

It is a frustrating change in fortunes for the world’s biggest jet manufacturer, which was confident it could capitalize this year on a postpandemic surge in demand. Instead, Airbus is mired in supply-chain issues.

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