Hong Kong aviation investigators say an engine problem that caused Cathay Pacific to ground its entire fleet of Airbus A350 jets for inspection earlier this month could have escalated into “extensive damage.

An engine defect in the Airbus A350 plane that led to the cancellation of dozens of Cathay Pacific flights in early September could have escalated into "extensive damage", according to the results of a Hong Kong probe released Thursday.

Airline Cathay Pacific has bought back all warrants issued to the Hong Kong government in 2020, another step in repaying the government for a pandemic-related recapitalisation package, the company said on Friday.

Hong Kong flag carrier Cathay Pacific Airways has completed its buy-back of all warrants issued to the government at HK$1.53 billion (US$196 million), the airline’s chief has said.

A probe by Hong Kong's aviation authority found a ruptured fuel hose caused a mid-flight fire on a Cathay Pacific operated Airbus A350 plane this month. The aircraft was en-route to Zurich with 348 passengers and crew aboard when the fire was discovered,