HONG KONG: Cathay Pacific makes further capacity cuts
Reporting a 22 per cent decline in turnover for the first quarter of 2009, year-on-year, Hong Kong-based Cathay Pacific Airways Ltd said Thursday that it will cut capacity and ask its staff to take unpaid leave over the course of the next twelve months. The carrier said that from May 2009, overall planned cargo capacity […]
May 1, 2009
The carrier said that from May 2009, overall planned cargo capacity will be reduced by 11 per cent while passenger capacity at Cathay Pacific will be reduced by eight per cent and at subsidiary Dragonair by 13 per cent.
Cathay Pacific noted that in the first quarter of 2009, turnover from passenger and cargo services of Cathay Pacific and Dragonair was down 22.4 per cent from the same period a year earlier.
Earlier this week, Cathay Pacific said it and its subsidiary Dragonair combined recorded a decline in cargo and mail shipments of 13.7 per cent for the month of March, year-on-year, as the ongoing global recession continued to seriously impact the air freight industry.
Intense competition in a rapidly shrinking market also put significant pressure on the company’s cargo yield, the airline said.
The number of passengers travelling on the two combined also dropped, by 3.2 per cent to about 2.1 million compared to the same month last year, Cathay Pacific said in a statement.