HONG KONG • Cathay Pacific Airways will cut around 6,000 jobs, or 18 per cent of its workforce, and axe regional brand Cathay Dragon to help it weather the coronavirus pandemic, the South China Morning Post (SCMP) reported yesterday, citing sources.

The airline said in June that it was reviewing its strategy in the light of the travel slump, with "tough decisions" to be announced in the fourth quarter. Analysts expected that it would announce major job cuts.

That month, the Hong Kong government also led a US$5 billion (S$6.8 billion) rescue package for the airline, which has been burning through around HK$1.5 billion (S$263 million) to HK$2 billion of cash a month.

SCMP said the airline was expected to announce the job cuts today, adding that the figure had been reduced from 8,000 layoffs after government intervention.

The newspaper, citing unidentified sources, said the airline will sacrifice Cathay Dragon, but staff and resources of the two airlines would be merged.

Cathay declined to comment.

The airline last month said it would not apply for further government employment subsidies for its main business units, allowing it to make job cuts at Cathay Pacific and Cathay Dragon, though not at budget carrier HK Express.

Cathay had refrained from major job cuts, but Singapore Airlines has announced plans to cut around 20 per cent of its positions, while Australia's Qantas Airways has said it will cut nearly 30 per cent of its pre-pandemic staff.

Cathay has sent around 40 per cent of its passenger fleet to less humid locations outside Hong Kong for storage. On Monday, the airline said it expected to operate less than 50 per cent of its pre-pandemic passenger flight capacity next year.

Passenger numbers last month fell 98.1 per cent compared with a year earlier due to border closures, though cargo carriage was down by only 36.6 per cent.

REUTERS