Due to the Impact of Novel Coronavirus... Cathay Pacific Implements 3 Weeks of Unpaid Leave

Passenger Numbers Plummet by 50% Due to Novel Coronavirus

China Routes Reduced by 90%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Cathay Pacific, Hong Kong's largest airline, has requested all employees to take unpaid leave for three weeks as passenger numbers decline due to the spread of the novel coronavirus (Wuhan pneumonia). This is the third time Cathay Pacific has reduced its flight routes, following the 2003 outbreak of Severe Acute Respiratory Syndrome (SARS) and the 2009 global financial crisis.

According to the South China Morning Post (SCMP) on the 5th, Augustus Tang, CEO of Cathay Pacific, stated in an internal message, "The current situation is no different from the 2009 global financial crisis," adding, "We do not know when this crisis will end, and cash reserves are a matter of the company's survival," highlighting the severity of the situation. Tang CEO also appealed, "I hope all employees will step up for the company."

Typically, the Lunar New Year (Chunje) period is considered the peak season for Hong Kong airlines, but Tang CEO said, "We experienced the worst period during this Chunje."

Accordingly, Cathay Pacific has asked approximately 27,000 employees to voluntarily take unpaid leave from March to June.

Due to the recent spread of the novel coronavirus, Cathay Pacific has seen passenger numbers drop by nearly half and has reduced its overall flight routes by about 30%, including a 90% cut in routes to mainland China.

Previously, during the 2003 SARS outbreak, Cathay Pacific reduced its flight routes by 45% and suspended operations of 22 passenger aircraft.

This content was produced with the assistance of AI translation services.