Cathay Pacific Airways warns of declining airfares, challenges at budget carrier, and uncertain cargo market conditions. The airline ordered 14 more Boeing 777-9 jets as it expands long-haul routes. First-half profit rose 1% to HK$3.65 billion. Passenger yields dropped due to added capacity. HK Express faces short-term challenges.

Cathay shares dropped 9.7% to a one-month low after results were in line with expectations, but the budget airline segment underperformed. Yields at Asia’s airlines are decreasing as carriers add capacity and competition intensifies. North America yields fell by 17.5%. Cathay added 50% more U.S.-bound capacity this summer.

Bookings for Japan have not yet recovered since a drop-off in June. Cathay, one of Asia’s largest cargo carriers, benefits from rising e-commerce volumes out of China. Cargo business showed resilience despite uncertainty from changes to U.S. tariffs. Cargo division’s half-year revenue rose 2.2% while yields fell 3.4%.

Cathay’s order for 14 more 777-9 planes with GE engines is part of a 2013 order for 21 jets. Delivery expected by 2034. The 777-9, Boeing’s latest version of its 777, is undergoing flight testing and expected to start deliveries next year. Cathay expects its first 777-9 delivery in 2027.

Read more at Yahoo Finance: Cathay Pacific warns of declining fares and cargo uncertainty, shares fall