HONG KONG, Sept 28 (Reuters) – Cathay Pacific Airways Ltd (0293.HK) said on Monday it will close its regional jet fleet as part of a restructuring plan to reduce costs and improve efficiency amid the prolonged impact of COVID-19 on air travel..
The Hong Kong-based carrier said it will retire 19 Embraer E190 aircraft, resulting in job losses for about 600 cabin crew and 120 pilots..
Cathay Pacific’s regional operations have been hit hard by the pandemic, with passenger traffic dropping by more than 90% at the height of the crisis. The airline has been operating a reduced flight schedule and has implemented various cost-cutting measures, including pay cuts, unpaid leave, and a hiring freeze..
The closure of the regional jet fleet is part of Cathay Pacific’s three-year restructuring plan, which was announced in June. The airline is aiming to reduce annual operating costs by HK$4 billion ($513 million) by 2023..
Other measures under the restructuring plan include reducing the size of the Cathay Pacific fleet by 15%, trimming management layers, and outsourcing certain functions..
Cathay Pacific said it will continue to operate its long-haul and short-haul fleets, which consist of Airbus A350s, A330s, Boeing 777s, and Boeing 747s..
The airline said it will work with affected employees to provide support and explore redeployment opportunities within the company..
The closure of the regional jet fleet is the latest blow to Cathay Pacific, which has been facing a number of challenges in recent years, including the 2019 Hong Kong anti-government protests and the COVID-19 pandemic..
In August, Cathay Pacific reported a first-half loss of HK$9.9 billion, its worst-ever financial performance..
The airline industry has been one of the hardest hit by the COVID-19 pandemic, with global air travel demand plummeting by more than 90%. Airlines around the world have been forced to cut costs and reduce capacity in order to survive the crisis..
