According to a memo from Cathay Pacific's CEO on November 21, 2022, the airlines will increase basic salary by 3.3% on average in 2023 and give incentives worth the equivalent of one month's salary to Hong Kong-based employees who exceed performance goals.
To restore the capacity that was lost due to the COVID-19 pandemic, the airline previously stated that it intends to add 4,000 people over the next 18 to 24 months. After more than two years of quarantine regulations paired with a permanent salary reduction of up to 58% in 2020, pilot turnover at Cathay has been higher than usual.
As it trains pilots and reactivates planes, Cathay said last week (third week of November 2022) that it expects to reach 70% of its pre-pandemic passenger capacity by the end of 2023, up from 33% by the end of 2022. The number of passengers carried by Cathay Pacific increased significantly in October 2022 over that in the previous months, as reported by the airline.
According to the airlines, the annual net loss stood at HKD5,527 million in 2021 compared to KHD21,648 million in 2020.
In response, the Hong Kong Aircrew Officers Association (HKAOA), which represents some Cathay pilots, stated that while any raise and bonus were appreciated, they were insufficient to prevent an exodus of the crew or the airline's escalating training issues.
HKAOA also raised concerns that flying targets of some fleets would increase in 2023, causing some pilots to receive a 9% decrease in pay. In addition to the increase in basic pay, Cathay noted that some temporary pandemic-related measures such as lowered productivity targets would be reinstated. However, it also noted that there were improvements in productivity-related pay, monthly reimbursements, and children’s education reimbursements. Even though second-half results are expected to improve due to an increase in travel and air freight demand, the airline, on November 18, 2022, nevertheless predicted a “substantial” yearly loss.
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