Cathay Pacific Embarks On Billion-Dollar Airbus Deal For Freighters
Portfolio Pulse from Lekha Gupta
Cathay Pacific Airways Ltd has announced the purchase of 6 A350F aircraft from Airbus SE for $2.71 billion, with deliveries expected by the end of 2029. The deal also includes an option to buy 20 more A350 freighters. This move will enhance Cathay Pacific's fleet capacity, focusing on long-haul routes to North and South America, and Europe. The new Airbus aircraft will start being delivered in 2027, signaling a shift away from Cathay's current Boeing 747 freighter fleet. In a separate deal in September, Cathay doubled its orders for the Airbus A320neo Family to 64 aircraft for $4.66 billion. CPCAY shares saw a slight increase of 0.51% to close at $4.93 on Thursday.
December 08, 2023 | 1:28 pm
News sentiment analysis
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NEGATIVE IMPACT
Cathay Pacific's decision to purchase Airbus aircraft over Boeing's may be seen as a negative for Boeing, as it indicates a preference for Airbus freighters to replace Boeing's 747 fleet.
Cathay Pacific's shift from Boeing to Airbus for its freighter fleet could be interpreted as a loss of confidence or competitiveness for Boeing in this segment. This may have a negative short-term impact on investor sentiment towards Boeing.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Cathay Pacific's purchase of Airbus A350F aircraft and the option for additional freighters indicate a significant expansion and modernization of its fleet, which could enhance its long-term operational efficiency and competitiveness.
The acquisition of new aircraft is a major capital investment that typically signals confidence in future growth and operational improvements. While the impact on the stock may not be immediate, the modernization of the fleet is a positive development for the company's long-term strategy.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Cathay Pacific's new Airbus deal could positively influence investor sentiment, as evidenced by the slight increase in CPCAY shares following the announcement. The modernization of the fleet may be viewed as a strategic move to improve efficiency.
The stock price increase, albeit modest, suggests a positive market reaction to the news of the Airbus deal. The long-term benefits of fleet modernization could be factored into the stock's performance over time.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Airbus SE's sale of 6 A350F aircraft to Cathay Pacific for $2.71 billion, with an option for 20 more, represents a significant business win and could positively impact EADSY's revenue outlook.
The sale of aircraft is a major revenue driver for Airbus. A deal of this magnitude, especially with the potential for additional orders, is likely to be seen as a positive development for the company's financial performance.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90