Cathay Pacific considers additional cutbacks amid coronavirus

Hong Kong-based airline Cathay Pacific has announced it is considering additional changes to scale back operations in a post-coronavirus world, the company said.

Since the beginning of the pandemic, Cathay Pacific has taken many cost-cutting measures, including furloughing pilots, laying off flight attendants, canceling nearly all passenger flights from April through the end of June, offering employees three weeks of unpaid leave, and cutting upper management salaries.

Cathay Pacific is looking at more layoffs, reduced routes and a reduced fleet.

There is speculation that the carrier may also look at consolidating its airline brands, which include Cathay Dragon, HK Express, and Air Hong Kong.

The airline has denied HKUSD 1.84 billion in support from the Hong Kong government´s wage-support scheme, which prevents airlines from shedding staff until October. The aid would have only covered about 9% of the company´s annual wage expense, which was over HKUSD 20 billion in 2019.