Cathay Pacific Airways Ltd. will buy as many as 60 Airbus SE A330neo twin-aisle jets in an HK$85.5 billion ($11 billion) deal to underpin its ambitious expansion from its base in Hong Kong.

The carrier on Wednesday confirmed an earlier Bloomberg report that it has placed an order with the European planemaker, overlooking an offer from US rival Boeing Co. for 787 Dreamliner jets.

The multibillion-dollar transaction for 30 A330-900neos with the right to purchase 30 more would be before significant discounts on large sales are factored in. Based on estimates provided by Ishka, an aviation consultancy that tracks aircraft sales, the order would probably be worth closer to $6.7 billion.

Cathay’s latest deal with Airbus is its third in 12 months and caps its biggest plane spending spree in more than a decade. It also takes its order backlog to over 100 jets. Cathay already has 48 A350 planes in its fleet and operates 43 older generation A330s. Boeing last won an order from Cathay in 2013.

Cathay also on Wednesday reported a fall in first-half net income as yields — an indicator of profitability fell — and costs rose by more than revenue. It joins airlines globally posting lower profits as the post-Covid travel surge wanes.

Net income slipped 15.3% year-on-year to HK$3.6 billion for the six months to June 30. Revenue rose 13.8% to HK$49.6 billion as passenger numbers climbed 36.4% over the same period of 2023. The airline issued a first interim dividend of 0.20 Hong Kong cents an ordinary share, or HK$1.3 billion to shareholders.

The airline’s recovery from Covid is gaining momentum, with Cathay and low-cost sister carrier HK Express adding a slew of extra flights to various destinations in China and Southeast Asia. Flights are back to around 80% of pre-pandemic volumes and Cathay’s schedules have largely recovered after a shaky start to the year when there were a lot of cancellations due to pilot shortages.

By 2025, the airline is targeting not only a full recovery but also expects to fly to 100 destinations, up from over 80 this year.

Shares in the carrier fell 2.1%, reversing intraday gains of as high as 2.7%.

Cathay is investing more than HK$100 billion over seven years for its new plane purchases and to refurbish existing aircraft. It plans to launch a new business class suite later this year along with a new premium economy and upgraded coach class product. A refreshed first class product is coming later as well. Money will also go toward adding and refurbishing premium lounges at airports too.

The heavy spend is part of Cathay’s pivot to the future as it seeks to put a disastrous Covid behind and cement its standing again as one of the world’s top airlines.

Last year, Cathay ordered dozens of new single-aisle and freighter aircraft — all from Airbus — as it prepares for an expansion at its home base of Hong Kong International Airport, which is in the process of constructing a third runway.

Including budget carrier HK Express, Cathay operates almost 220 mostly passenger aircraft. It has previously said it wants deliveries of the new mid-sized widebodies to start from 2028.