Cathay Pacific Airways (00293.HK) saw its shares plummet 5.50% during Wednesday's intraday trading, despite reporting robust first-half results. The Hong Kong-based airline's stock took a hit following the announcement of a significant aircraft purchase, which appears to have overshadowed its positive financial performance.

The airline reported a net income of HKD 3,651 million for the first half of the year, with a strong load factor of 84.8%, indicating healthy travel demand. However, investors seemed more focused on Cathay Pacific's announcement of a major fleet expansion. The company revealed plans to purchase 14 Boeing 777-9 aircraft at a basic price of about $8.1 billion, with deliveries expected by 2034. Additionally, Cathay secured the right to acquire up to seven additional Boeing 777-9 aircraft from Boeing.

While the airline's management stated that travel demand for Cathay Pacific remains robust, the market reaction suggests concerns about the financial implications of this large-scale investment. Adding to investor worries, the company noted that its subsidiary HK Express continues to face short-term challenges. Despite these headwinds, Cathay Pacific declared a first interim dividend of HK20 cents per ordinary share, signaling some confidence in its financial position. The sharp stock decline indicates that investors are weighing the long-term benefits of fleet modernization against short-term financial pressures and industry uncertainties.