'It has always been our culture to thank our people for the commitment and support they have shown,' says CEO
Hong Kong flag carrier Cathay Pacific will be rewarding staff with a bonus that is worth six weeks of their pay following an estimated HK$4.5-billion net income for the first half of the year.
Cathay CEO Ronald Lam announced the bonus as he underscored his employees' commitment to the airline.
"During difficult times, our people have always pulled together to support the Cathay Group," Lam said. "To this end, I am pleased to announce a Special Appreciation Reward for those who have been with us through the pandemic of up to six weeks of eligible pay, which will be paid in the September payroll."
Employees who joined the airline on or before December 31, 2022, will be receiving two weeks of eligible pay, according to the company's announcement.
Those who participated in a Special Leave Scheme or equivalent between 2020 to 2022 and have been continuously employed since then will be getting additional four weeks of eligible pay.
Meanwhile, the company is also planning to introduce a new profit-sharing scheme for the years 2023 to 2025, with more details to be announced next month.
"It has always been our culture to thank our people for the commitment and support they have shown," Lam said.
Employee bonuses after profitable six months
The bonus comes as the company said it is expecting a consolidated profit of approximately HK$4.0-4.5 billion for the first half of the year.
This forecast sees the airline bouncing back from the impact of COVID-19, which hit the aviation industry hard as global travel restrictions came into place.
For Cathay, Lam said the airline recorded losses around HK$33.7 billion over three years of the pandemic.
"The extreme circumstances Cathay faced during the pandemic were unlike anything any other carrier experienced," Lam said.
In 2020, the airline announced that it will be retrenching over 6,000 employees globally, or about 18% of its total headcount. It also axed is subsidiary carrier Cathay Dragon that had flights to mainland China and other regional destinations.
"The COVID-19 pandemic was the most challenging period in our history, but with the tremendous support from our people, customers, and other stakeholders, we are moving further and further away from those difficult days with each week that passes," Lam said.
The CEO said the company paid on June 30 the deferred divided on HK$1.5 billion on preference shares held by the Hong Kong government. The company also plans to buy back all the preference shares over the next 12 months.
"We are very encouraged to see that our journey of rebuilding Cathay is on the right track. We have seen a trend of continuous improvement in the performance of our airlines and our financial position is healthy," Lam said.
According to the CEO, this indicates its progress in rebuilding the airline after the pandemic.
"We are very grateful to both the HKSAR Government and our shareholders for their continued support during and after the pandemic," Lam said.
