Cathay Pacific asks employees to take unpaid leave as virus hits demand
Reuters
Published Feb 05, 2020 02:44AM ET
Cathay Pacific asks employees to take unpaid leave as virus hits demand
SYDNEY (Reuters) - Hong Kong's Cathay Pacific Airways Ltd (HK:0293) has asked all its 27,000 employees to take three weeks of unpaid leave in coming months as it battles a fall in demand caused by a virus outbreak, the company said on Wednesday.
On Tuesday, the carrier said it planned to cut about 30% of capacity over the next two months, including about 90% of flights to mainland China.
"Today, we are appealing to all employees to participate in the special leave scheme, which will take effect from 1 March and last until 30 June," Cathay said in a statement. "All employees will have the option to take three weeks of unpaid leave in this period."
The leave is not mandatory, a spokeswoman said, but it is encouraged.
The South China Morning Post earlier cited a video recording from Cathay Chief Executive Augustus Tang appealing to employees to help by taking up the leave.
Cathay shares were trading 2.1% higher as of 0730 GMT on Wednesday following the announcement of capacity cuts after the market closed on Tuesday.
In a note to clients, Jefferies analysts estimated the airline would report a loss in the first half of 2020 before returning to a profit in the second half, assuming traffic rebounds as it did with the 2003 SARS epidemic.
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