Hong Kong Airlines (HX, Hong Kong International) is considering reducing its fleet size in a bid to cut growing costs, The South China Morning Post has reported citing sources familiar with developments.

According to the report, the carrier is looking at cutting 10 aircraft from its current fleet of 39 aircraft which includes eleven A320-200s, eleven A330-200s, eleven A330-300s, and six A350-900s. The type that has come under the most scrutiny is the A330-200 of which nine are owned with the remaining two, the airline's oldest aircraft at 18 and 17 years respectively, leased from Avolon.

The source said unwanted aircraft may be transferred to shareholder HNA Group, returned to their lessor, or scrapped outright.

The airline subsequently confirmed it was "working on consolidating and optimising" its network and fleet in a bid to "boost revenue, manage costs and achieve higher productivity".

Hong Kong Airlines is currently locked in lawsuits with ILFC (now AerCap) and Wilmington Trust SP Services (Dublin) Limited over unpaid leasing dues amounting to around USD19 million.