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Friday 29 Nov 2019 , 10:35 am

Airline Cathay Pacific to Scale Back its Capacity by 1.4% in 2020

Cost control measures will be proportionate to the challenges the airline faces, internal memo sent out by CEO Augustus Tang Kin-wing says. The airline last shrank its capacity in 2013 by 1.8 per cent.
By SIN Bureau
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Hong Kong’s flagship airline Cathay Pacific will scale back its capacity by 1.4 per cent next year, reversing an earlier plan to grow by 3.1 per cent, as the city is suffering from a recession and a months-long social unrest.

(Source: Cathay Pacific Twitter Account)

No routes will be cut outright, but cost control measures will be unveiled which will be “proportionate to the challenges we face”, according to an internal memo sent out to employees by Cathay Pacific CEO Augustus Tang Kin-wing.

“This means further reductions in capacity will take place. These [will] include reductions in frequency to various destinations across all the regions where we fly,” Tang said.

Tang added that the airline’s “position” had “deteriorated in recent weeks”, which justified swift action to address how much it spent into the next year.

Traffic from key markets, such as mainland China, and advance bookings into 2020 were “weaker than we would hope for,” he said.

“Put another way, rather than growing our airlines in 2020 for the first time in a very long time, our airlines will reduce in size.”

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Neha Mule

Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.

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