Jobs threat as Cathay Pacific cuts costs

Jobs threat as Cathay Pacific cuts costs

Jobs at Cathay Pacific are under threat as part of a cost-cutting restructuring in the face of increased competition.

The Hong Kong-based airline said “some jobs will no longer be needed” as it unveiled plans to turn the business around “for change and success”.

The airline declined to detail how many positions will be affected.

The new strategy will include customer focus and productivity, with data analytics and digital capabilities helping to remove inefficiencies and waste.

Cathay Pacific cited changing and increasing customer expectations, rising competition, and an unstable global economy.

These and other factors “have combined to put huge pressure on our business”.

The airline said: “The competition is here to stay and the uncertainty is ‘the new normal’ – we simply must respond.”

Changes to the way the carrier is organised will start at the top, with plans to being implemented by the summer.

The airline described 2017 as a year of “significant change”, presenting an opportunity to tackle the “increasingly competitive aviation landscape” head on.

Cathay Pacific and sister carrier Dragon Air saw passenger numbers rise by just 0.9% in December to just under three million against the same month last year with a static load factor of 85%.

Overall carryings for 2016 edged up by just 0.8% to 34.3 million.

General manager revenue management Patricia Hwang said: “Overall passenger growth was in line with capacity as the Christmas peak got underway in December.

“Outbound traffic from Hong Kong was robust over the holiday period. Traffic to Europe rebounded from a low base, which was due to the security concerns of a year ago.

“Our new operations to Madrid and Gatwick strengthened our network coverage in Europe and the UK. Helped by the weakened yen, Japan also proved a popular leisure destination over the holiday period.

“While we managed to grow passenger volume, yield continues to come under pressure due to excess capacity in the market.”

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