Cathay job cuts inevitable as headwinds persist, Jefferies says

Cathay Pacific will inevitably cut jobs as it reshapes operations to cope with the devastating impact of the coronavirus pandemic, according to Jefferies Hong Kong. Cathay’s monthly cash burn of HK$1.5b ($194m) to HK$2b is unlikely to change until travel and quarantine restrictions ease, Jefferies analyst Andrew Lee wrote in a note dated Sept. 14. Details on the company’s restructuring are only likely to be announced in November, he added. “The new-looking CX would inevitably lead to headcount reductions,” Lee wrote, referring to the airline’s code. Cathay released August traffic figures on Monday that showed the airline and unit Cathay Dragon flew only 35,773 passengers in the month, a slump of 98.8% from a year earlier. Chief Customer and Commercial Officer Ronald Lam warned that the carrier wouldn’t survive unless it adapted to the new travel market.<br/>