Cathay Pacific To Cut 5,900 Jobs, End Cathay Dragon Brand Due To Pandemic

Plans to end the brand earlier this year hit roadblocks from China’s aviation regulator because of infractions during last year’s pro-democracy protests, two sources told Reuters in May.

Cathay said it would seek regulatory approval to fold the majority of Cathay Dragon’s routes in Cathay Pacific and low-cost arm HK Express.

Like Singapore Airlines, Cathay lacks a domestic market to cushion it from the fall in international travel due to border closures.

In September, Cathay’s passenger numbers fell by 98.1% compared with a year earlier, though cargo carriage was down by a smaller 36.6%.

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

Cathay shares have fallen 43% since the start of January. In July, it reached agreement with Airbus SE to delay the delivery of A350s and A321neos and said it was in advanced talks with Boeing Co about deferring its 777-9 orders.

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