Cathay Pacific attempts to cool tensions with shareholders as staff face imminent job cuts

Cathay Pacific Airways has told shareholders it is making “significant progress” on a restructure of the airline, but refused to offer any specific information regarding job or budget cuts. Responding to shareholders’ queries on topics such as the airline’s fuel hedging strategy, cost saving initiatives, and a drop in service standards, chairman John Slosar said the company would continue on a path to get the company back on track. Slosar did offer reassurance that losses relating to fuel hedging will end in 18 months’ time, when the relevant contracts expire. The airline is embarking on a three-year HK$4b cost saving exercise to overhaul the business after recording a HK$575m (US$73m) loss in the last financial year. Part of the plan already announced will see management jobs cut, a pay freeze for managers, all non-critical recruitment halted and a 30 per cent cut in staff costs at its headquarters. Speaking to shareholders about the broader changes at the business, Slosar said: “On all those fronts we are making significant progress,” he said at the company’s annual general meeting on Wednesday morning, without offering specific details on the progress. “There is certainly more to come on that, and I would just add that we will not rest until we get Cathay Pacific to the point where it needs to be.”<br/>