CATHAY Pacific Airways is planning to slash its profit-share payout to its workers by almost 50 per cent.
The Hong Kong carrier is only planning to distribute at least four weeks of eligible pay as part of its profit-sharing programme for 2024, according to a staff memo from chief executive officer Ronald Lam seen by Bloomberg on Thursday (Jan 23).
The planned payout is down on the 7.2 weeks of pay given last year.
Lam told staff the final figure will be confirmed later, but also cited the reduction is partly based on growth in employee numbers, meaning profit needs to be spread across a bigger workforce.
Cathay’s 2024 first-half profit fell 15 per cent as competition grew and analysts expect Cathay to deliver annual net income of HK$7.8 billion (S$1.4 billion), which would be lower than the HK$9.8 billion earned in 2023.
After Covid, Cathay has been gradually rebuilding its flight operations, managing to hit 100 per cent of its pre-pandemic flight capacity month. The airline has been held back by staffing shortfalls in key areas such as the cockpit, and a backlog of training. It is spending HK$100 billion in coming years, with several dozen new aircraft arriving, as it gears up for expansion.
The profit-sharing handout comes after staff received the equivalent of one month’s pay as a 2024 annual bonus.
Separately, Cathay said it was experiencing a slew of IT issues impacting flight-booking services on its website and mobile app, and disrupting customers from being able to check-in online. The airline’s self-check-in system at Hong Kong International Airport was also down. Passengers were asked to arrive at the airport at least three hours before departure.
Cathay’s shares were down 0.4 per cent in Hong Kong at 1.38 pm local time. BLOOMBERG
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