London Daily

Focus on the big picture.
Friday, Oct 24, 2025

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

0:00
0:00
Close
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
×