Cathay Pacific today announced that a 13th month discretionary bonus payment for 2016 will be paid to eligible Hong Kong-based staff in recognition of their dedication and contribution during the year, despite a very difficult financial environment and the major challenges that the airline continues to face.
The airline also announced a 2% salary increment for all eligible non-managerial Hong Kong-based staff (Levels A and B) for 2017. There will be no salary increment for more senior staff.
Cathay Pacific Chief Executive Ivan Chu said: “This decision reflects the current business environment, whilst also recognising the hard work of our teams throughout this year, and the impact that changes in the cost of living have on our people, particularly those working on the frontline.”
Mr Chu went on to explain the changing aviation landscape that the Cathay Pacific Group is currently operating in. He said: “We have seen a significant drop in the revenue we generate due to factors such as pressure on yield, excessive capacity and a decline in premium traffic. We believe that 2017 will remain challenging with the same adverse factors having a continued impact on our business. We cannot afford to fall further behind, which is why we are undertaking a critical review of our business.”
Mr Chu described 2017 as being a crucial year for Cathay Pacific and called upon all staff “to move forward together on this important journey to get back to our winning ways.”