Hong Kong’s Cathay Pacific Airways will make additional cuts to passenger capacity due to deficient demand, leaving it with two flights a week every to four long-haul locations in April, based on an internal memo.
The airline carried 582 passengers one day this week with a load issue of 18.3%, which compares to 100,000 prospects on a typical day, Cathay chief executive Augustus Tang stated in a memo to workers.
The carrier will maintain a skeleton long-haul network with two weekly passenger flights from Hong Kong to London, Los Angeles, Vancouver, and Sydney while hoping to continue three weekly regional flights to major destinations around Asia reminiscent of Singapore, Beijing and Tokyo.
It will try to capitalize on more robust cargo demand, the memo stated.
Most Cathay staff already agreed to take three weeks of unpaid leaves as a part of an effort to chop prices.
Tang stated additional unpaid leave in the form of temporary stand-downs and furloughs had been occurring in some areas for ground workers where it had stopped flights or reduced capability.
He’ll take a 30% cut to his base salary from April to December, as will Chair Patrick Healy, with executive directors taking a 25% cut, the memo stated.