Cathay Pacific’s latest orders signal post-recovery growth is back on the agenda

While Cathay Pacific's return to profitability is a positive sign of its recovery, the airline's decision to order more narrowbodies is an equally strong indicator of its improving financial health and longer-term growth prospects.

Cathay Pacific has exercised purchase rights for 32 more Airbus A320neo-family aircraft. Although they are not due for delivery for a few more years, the timing of the order shows that the airline is confident it has turned a corner.

Such fleet moves appeared to be a distant prospect a year ago, when Cathay Pacific was still struggling with a host of challenges as it tried to gain momentum and was only operating a fraction of its pre-pandemic capacity.

Now, capacity is accelerating quickly and meeting the airline's recovery expectations.

And in another encouraging sign, Cathay Pacific is in a sound enough position to set a timeline for repurchasing the shares that the Hong Kong government bought to support the airline during the COVID-19 pandemic.