Hong Kong’s Cathay Pacific Airways reported a record HK$9.87b ($1.27b) H1 loss and said it did not expect a meaningful recovery in passenger demand for some time due to the coronavirus pandemic. The figure was in line with the HK$9.9b forecast it had flagged last month and included HK$2.47b of impairment charges. Revenue plunged 48.3% to HK$27.7b in the six months ended June 30 as it slashed passenger flying to a barebones schedule due to lower demand and border restrictions, though it added more cargo-only flights as freight yields rose 44.1%. The airline, which received a $5b rescue package led by the Hong Kong government, has so far refrained from large-scale job cuts but has warned it is reviewing all aspects of its business model with an update expected by the fourth quarter. “Inevitably this will involve rationalisation of future planned capacity compared to pre-crisis plans, taking into account the market outlook and cost structure at that time,” chairman Patrick Healy said Wednesday. It has rearranged its aircraft order book with Airbus to delay deliveries, is in advanced talks with Boeing to do the same and has begun sending one-third of its fleet outside Hong Kong for storage in less humid conditions.<br/>
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BA has hailed “significant progress” in negotiations with unions over its contentious plan to restructure its business as the airline battles to survive the crisis engulfing the aviation industry. In a letter to staff on Tuesday, CE Alex Cruz said the carrier had signed an agreement in principle with unions over the future of parts of its workforce, following the sharp drop in flights this year because of the coronavirus pandemic and resulting restrictions on international travel. The deal does not apply to cabin crew but covers engineers and staff at Heathrow who work in roles such as check-in and ticketing, and extends to staffing levels and changes to working practices such as the introduction of more flexible shift patterns. Customer-facing ground staff at Heathrow will now not face compulsory redundancy, although engineers could still suffer forced job losses. “I am pleased to report we have made significant progress,” Cruz wrote in the letter. Cruz said the deal would “save jobs and mitigate the impact of redundancies”.<br/>
American Airlines told employees Tuesday the company is extending the window to apply for voluntary exit packages or long-term voluntary leave of absences through Aug. 17. The announcement comes as it is uncertain if Congress will approve another $25b in payroll assistance for passenger airlines to keep tens of thousands of workers employed for another six months after Sept. 30. American said it would "keep the application window open until we have more clarity about how Congress and the administration intend to proceed."<br/>
China’s aviation regulator said on Wednesday that it would suspend Etihad Airways from flying its Abu Dhabi-Shanghai route and China Eastern Airlines from operating its Manila-Shanghai route each for a week from August 17 due to COVID-19 cases. SriLankan Airlines will halt its Colombo-Shanghai route for four weeks from August 17 due to a high number of arriving passengers testing positive for the coronavirus, the Civil Aviation Administration of China said.<br/>