Cathay Pacific Airways plans to reduce its profit-sharing payout to employees by 45% from last year.
The Hong Kong airline is set to distribute at least four weeks of eligible pay as part of its 2024 profit-sharing program, compared to 7.2 weeks of pay given last year, according to a staff memo from CEO Ronald Lam as reported by Bloomberg.
A Cathay Pacific aircraft seen on a runway. Photo by Pixabay |
This profit-sharing adjustment comes after employees received a 2024 annual bonus equivalent to one month’s pay.
Lam attributed the decrease partially to an increase in employee numbers, which requires profits to be shared across a larger workforce.
Cathay’s profit for the first half of 2024 fell by 15% due to rising competition.
Although the airline has resumed all of its pre-pandemic flight capacity, it still struggles to speed up recovery progress due to the shortage of pilots, training backlogs, and IT issues which have disrupted customers’ booking experience.
Comments are closed.