Hong Kong’s Cathay Pacific Airways Ltd said on Wednesday it would cut 5,900 jobs and end its regional Cathay Dragon brand as it grapples with a plunge in demand from the coronavirus pandemic.
The restructuring will cost HK$2.2 billion ($283.9 million) and the airline will also seek changes in conditions in its contracts with cabin crew and pilots, it told the stock exchange.
Overall, it will cut 8,500 positions, or 24% of its normal headcount, but that includes 2,600 roles currently unfilled due to cost reduction initiatives, Cathay said.
“The future remains highly uncertain and it is clear that recovery is slow,” Cathay said in a statement, citing the International Air Transport Association’s expectation it will take until 2024 for passenger traffic to recover to pre-COVID-levels.
The airline, which has stored around 40% of its fleet outside Hong Kong,…