Arab Press

بالشعب و للشعب
Tuesday, Mar 17, 2026

Struggling Cathay Pacific hints at further job losses with pilots now in the firing line

Struggling Cathay Pacific hints at further job losses with pilots now in the firing line

In midst of ‘structural change’ review airline had said nothing was off the table. Senior manager apologises for ‘rumour and uncertainty’ caused by lack of detail

The Cathay Pacific Group has given its clearest hint yet of job losses among pilots as part of its Covid-19 “structural change” review, ahead of crunch talks in around two weeks.

Alex McGowan, the general manager of aircrew, said in a memo to the company’s 4,100 cockpit crew the airline’s priority “is to preserve pilots’ jobs where we can”.

Cathay has said upcoming discussions with the Hong Kong Aircrew Officers Association (HKAOA), representing unionised pilots, would involve “challenging conversations”.

The contents of the memo referenced the job losses caused by the company’s previous restructurings, and a lower-cost pilot contract, suggesting one approach the airline might take in talks. Some pilots who previously switched to the cheaper contract took an approximate 50-60 per cent cut to total pay, which includes housing and other allowances.



Cathay’s structural review, disclosed by the Post last week, could involve a combination of fewer staff, planes, routes and brands under the airline group.

“We had hoped that by now we would have met with the HKAOA to begin to work through the implications of the crisis for our Hong Kong-based pilots,” McGowan said.

“These will be challenging conversations and we want to ensure we don’t undertake them until we have more clarity. I appreciate the current lack of detail allows rumour and speculation to grow and I’m very sorry for this.”

According to the company’s 2019 annual report, it employs more than 34,200 people, including 27,342 at Cathay Pacific and Cathay Dragon. The group operates 236 aircraft to 119 destinations in 35 countries.

Two previous significant restructurings in 1998 and 2017-18 were cited in the memo. Several hundred people were laid off in each of those years.

The loss of 760 jobs in 1998 allowed the airline to “keep the team together” during the severe acute respiratory syndrome (Sars) outbreak in 2003, and the 2008-09 financial crash, the memo said. More recently, the airline also confirmed it had laid off a total of 566 employees as a result of the closure of its cabin crew bases in the United States and Canada.

“We can no longer claim we have ‘kept the team together’,” McGowan said. “We can only say that we have taken a considered range of measures to support the continuity of our business over the long term for the benefit of as many of our people – current and future – as possible.”

Cathay Pacific has been one of the airlines hardest hit by the Covid-19 pandemic, which has caused the grounding of most of its aircraft and a near-total collapse in demand for air travel.



Airlines globally have been pushed to the brink without significant cash-raising or state-aided bailouts. So far, the bulk of Cathay’s 34,200 staff have taken three weeks of unpaid leave.

Addressing the cost of pay, McGowan said almost 500 pilots, or 12 per cent of aircrew, including cadets and recent hires, had signed on to lower-paying contracts first introduced in 2018.

Experienced captains employed on contracts drafted in 1999 switched to the cheaper 2018 terms, which allowed pilots to extend their flying career rather than retire at the mandatory age of 55, the memo also said.

McGowan said the 2018 contract, along with a major investment in a pilot rostering and scheduling system, would provide “a strong foundation for us to come through this crisis”.

Pilots saw more of their pay linked directly to the number of hours they flew per month, while both airline brands received the same contract for the first time.

On basic pay, the most senior officers saw a two-fifths reduction, which excluded allowances for housing, and education, when comparing the company’s pay scales for the 1999 or 2008 contracts versus the 2018 edition. The lowest ranked second officer would get 23 per cent less.

With the lack of flying, pilots on 2018 contracts – who are guaranteed fewer minimum flying hours per month than their 1999 or 2008 counterparts – would be paid less, widening the gap.

In 2017, the airline disclosed 43 per cent of its pilots received housing allowances that cost the company HK$900 million.
Pilots, particularly those with families, on 1999 or 2008 contracts have voiced concern that being moved onto 2018 contracts could leave them unable to pay for day-to-day living costs.

The airline stressed last week no firm direction had been set, nothing had been taken off the table, and it could not rule anything out.

Last year, the airline’s staff costs reached HK$17.6 billion or 17 per cent of total operating expenses.

“Cathay was already on a mission to increase employee efficiency prior to Covid-19, but recent woes will only accelerate this push to raise employee productivity among leaner teams,” said Luya You, transport analyst at brokerage Bocom International.

“Most airlines are likely looking to reduce overall staff levels, but increase productivity among remaining employees. Industry-wide employee productivity has not shifted by much in recent years as airlines were focused more on expansion and rapid hiring.”

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia Targets South African Professionals in New Recruitment Drive Amid Regional Uncertainty
Formula One Faces Major Financial Hit as Bahrain and Saudi Arabian Grands Prix Cancelled Amid Middle East Conflict
U.S. and Saudi Firms Launch Local Production of Attritable Drone Systems in Saudi Arabia
Saudi Arabia and UAE Warn Rising Gulf Tensions Could Endanger Regional Security
Saudi Arabia Rejects Claims It Encouraged Prolonged War With Iran
Saudi Arabia to Host World’s Largest Single-Cell Protein Plant as Food Security Push Accelerates
Saudi Crown Prince Urges Trump to Continue Military Pressure on Iran
Iran Intensifies Drone Campaign Against Saudi Arabia as Gulf Conflict Escalates
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Washington State Pilot Among Six U.S. Airmen Killed in Military Aircraft Crash Over Iraq
Severe Storm Threat Looms Over Washington as Tornado Risk and Damaging Winds Target Mid-Atlantic
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Saudi Stocks Edge Lower as Tadawul All Share Index Slips Slightly at Market Close
Iranian Missile and Drone Strike Targets Saudi Arabia’s Prince Sultan Air Base Hosting US Aircraft
Saudi Air Defenses Intercept Drone Over Eastern Province as Iranian Strike Campaign Intensifies
Middle East War Reshapes Gulf Economies as Saudi Arabia and Oman Gain Strategic Leverage While UAE Faces Economic Shock
Iranian Ambassador in Riyadh Blames ‘Enemies’ for Attacks Across the Gulf
Israeli Envoy Ron Dermer Reportedly Visits Saudi Arabia for Discussions on Potential Lebanon Talks
Formula One Cancels Bahrain and Saudi Arabian Grands Prix Scheduled for April
Iran’s Ambassador in Riyadh Rejects Claims Tehran Targeted Saudi Oil Facilities
Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ in Major Push for Data-Driven Economy
Saudi Arabia’s 2018 Budget Signals Strong Push for Non-Oil Economic Growth
Pakistan Envoy in Riyadh Says Regional Diplomacy Intensifying to Prevent Wider Middle East War
Saudi Arabia Intercepts Dozens of Drones as Regional Strikes Kill Two in Oman
Saudi Arabia Redirects Oil Exports to Red Sea Ports as Strait of Hormuz Tensions Escalate
Saudi Arabia Intercepts Missile and Drone Barrage as Regional Conflict Intensifies
Iran Expands Drone and Missile Campaign Across Gulf as Conflict With US and Israel Intensifies
Muslims Worldwide Await Saudi Moon Sighting to Confirm Eid al-Fitr 2026 Date
F1 Calendar Faces Major Disruption as Middle East Conflict Threatens Bahrain and Saudi Races
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Saudi Arabia Slashes Oil Output as Strait of Hormuz Crisis Cuts Deep Into Gulf Revenues
Saudi Arabia’s Cultural Scene Presses Ahead as Nation Navigates Regional War
Saudi-Pakistan Defence Pact Faces Real-World Constraints as Iran War Escalates
Saudi Arabia Offers Two Million Barrels of Crude From Red Sea as War Disrupts Gulf Exports
Formula One Faces Tens of Millions in Lost Revenue if Bahrain and Saudi Arabia Races Are Cancelled
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Middle East War
Saudi Arabia Downs Dozens of Iranian Drones in Major Defensive Operation
Saudi Arabia Cuts Oil Output by About Twenty Percent as Iran War Disrupts Gulf Energy Flows
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Iran War
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Saudi Arabia Launches Royal Institute of Anthropology to Examine Social Transformation
Pakistan’s Prime Minister Shehbaz Sharif Arrives in Saudi Arabia for High-Level Talks
×