Shares of Cathay Pacific Airways fell 4.5% in early trade on Thursday after the Hong Kong flagship carrier warned of declining airfares, challenges at its budget carrier and uncertain cargo market conditions.

Cathay Pacific Airways announced a US$8.1 billion order for 14 Boeing 777-9 jets, marking its first transaction with the U.S. manufacturer in 12 years.

The Hong Kong flag carrier said it will buy Boeing jets valued at about US$8 billion as it posted a slight increase in first-half profit on higher passenger volumes and lower fuel prices.