It was reported that Cathay Pacific Airways Ltd is planning to slash its profit share payout to its workers by almost 50%.
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 (January 23).
The planned payout is down on the 7.2 weeks of pay given last year.
Lam told staff the final figure would 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% as competition grew and Analysts expect Cathay to deliver annual net income of HK$7.8 billion (US$1 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% of its pre-pandemic flight capacity month. The airline has been held back by staffing shortfalls in key areas like 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. – Bloomberg
