London Daily

Focus on the big picture.
Friday, Aug 01, 2025

'Demand has disappeared': Cathay Pacific slashes more flights after flying just 582 people in one day

'Demand has disappeared': Cathay Pacific slashes more flights after flying just 582 people in one day

Cathay Pacific is used to carrying about 100,000 daily passengers. At one point this week, it flew just 582 customers in a day.
The is the grim reality Hong Kong's flagship airline is facing as the novel coronavirus pandemic worsens, darkening the outlook for the global travel industry and "intensifying" financial ramifications for businesses like Cathay, CEO Augustus Tang said Friday.

He disclosed the dismal passenger numbers in an internal memo that was shared with CNN Business, announcing that passenger flights would be reduced even further from a "skeleton schedule" that was previously announced.

Two weeks ago, Cathay Pacific had already slashed 96% of passenger flight capacity for April and May, citing a severe drop in demand as the virus outbreak continued to empty out airports. It also made similar cuts to Cathay Dragon, the company's regional airline, and suspended all flights on its low-cost carrier, Hong Kong Express.

"[But] since I last communicated, our passenger fleet has been virtually grounded," Tang wrote to staff Friday. "Remaining demand has disappeared."

The 582 passengers flown earlier this week represented a 99% drop from Cathay's daily expected average, and a load factor of just 18.3%, the CEO noted. Passenger load factors are an important metric for carriers as they measure an airline's capacity to fill seats and generate revenue.

Cathay says it will now operate only two flights a week in April to four long-haul destinations, including London, Los Angeles, Vancouver and Sydney. It will also aim to maintain three weekly regional flights to eight cities, including Tokyo, Manila and Singapore.

The company has not ruled out the possibility of cutting back even further. "A timeline for a recovery in our customer demand still remains impossible to predict," Tang noted.

The pandemic has forced the airline industry into one of its worst crises in history. Last week, the International Air Transport Association predicted that carriers could lose up to $252 billion in passenger revenue, down 44% compared to last year and more than double the organization's previous estimate for a "worst case scenario."

That's leaving companies like Cathay to double down on cost-cutting measures. Several industry CEOs have already stopped taking salaries, and Tang announced Friday that he and Cathay chairman Patrick Healy would also slash their base salaries by 30%. Additionally, the airline's executive directors will each take a 25% pay cut through December.

The airline has also asked its 27,000 staff members, most of whom are based in Hong Kong, to consider taking three weeks off without pay. As of last month, 80% of staff had volunteered for unpaid leave, while furloughs have begun "for ground employees where flight activity has now ceased," according to the company.

For now, Cathay is working to stay afloat by maintaining its cargo business, where demand has remained "strong," said Tang.
"However, the reduction of capacity on our wide body fleet means our cargo revenues are still well below last year," he added.

Cathay shares have plunged almost 30% so far this year. Its stock was down 1.2% in Hong Kong on Friday following the announcement.

"We will get through this," Tang told employees."We will continue to explore every area to ensure the Cathay Group emerges from this unprecedented crisis able to compete vigorously and to help Hong Kong to get back on its feet."
Newsletter

Related Articles

0:00
0:00
Close
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
×