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.
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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.
