More Trouble For Airline Industry? Cathay Pacific To Lay Off 5,900 Employees Amid Pandemic

Hong Kong-based airline Cathay Pacific announced Tuesday that it would lay off 5,900 employees, as the travel industry grapples with lower demand due to the COVID-19 pandemic.

“The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive,” Cathay Chief Executive Augustus Tang said about the layoffs. “We have to do this to protect as many jobs as possible, and meet our responsibilities to the Hong Kong aviation hub and our customers.”

The restructuring plan would cut 5,300 employees in Hong Kong and another 600 in other locations. Also, about 2,600 unfilled positions would also be slashed.

The airline said it would no longer fly its Cathay Dragon brand. Cathay Dragon specialized in flights to 14 Asian countries.

Other Asian airlines have also slashed employees.

Singapore Airlines slashed at least 4,300 positions in September due to the pandemic. Japan’s ANA has considered voluntary job cuts and reducing monthly pay for about 15,000 employees.

U.S.-based airlines have seen major layoffs, as well. In October, American Airlines shed 19,000 workers while United Airlines cut 13,000.