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Report: Etihad Airways may cut order for Boeing jets

Etihad Airways PJSC may defer or cancel orders for 777X twin-engined jets from Boeing Co. worth billions of dollars owing to financial issues, Reuters reported, citing four sources familiar with the matter.

The Abu Dhabi-owned airline posted a $2 billion loss in 2016 and is willing to incur penalties for cancellation of the order rather than absorb future losses due to overcapacity.

Etihad ordered 25 of the 777X planes as a launch customer. The model is an upgrade of Boeing's mini-jumbo series, which includes the world's largest twin-engined jetliner, the 777-9, scheduled for launch in 2020.

Both Boeing and Etihad declined to comment on the matter, Reuters noted.