World News

Hong Kong’s Cathay Pacific to sell six Boeing aircraft to BOC Aviation

(Reuters) – Hong Kong’s Cathay Pacific Airways Ltd <0293.HK> on Monday said it would sell six Boeing <BA.N> 777-300ER aircraft and its associated equipment for $703.8 million to BOC Aviation Ltd <2588.HK>.

The sale will enable Cathay Pacific to realize cash which will be used towards its general working capital requirements, the company said in a statement.

The carrier last week warned of a substantial loss in the first half of the year and flagged more cuts in flights due to the “unprecedented challenge” from the coronavirus outbreak that has forced it to ground more than half of its fleet.

Cathay said it would lease the aircrafts back from BOC Aviation.

(This story has been refiled to fix typo in headline and first paragraph)

(Reporting by Niyati Shetty in Bengaluru, editing by Louise Heavens)