Cathay Pacific is implementing significant cost-cutting measures to position itself for sustainable growth and improved financial performance over the next decade. The Hong Kong-based carrier aims to reduce expenses by 20%, focusing primarily on administrative costs by 2030. This move comes amidst increasing industry competition and industry-wide concerns about artificial intelligence impacts.
According to sources, CEO Ronald Lam is leading efforts to identify roughly 5% savings across departments, with the airline adopting a more cautious growth approach during 2026. These strategies include merging departments and redefining job roles, which are expected to cause limited job cuts but aim to enhance operational efficiency. The airline also plans to slow its expansion, favoring stability and strategic investments, particularly in AI technology.
The decision follows a challenging period during the COVID-19 pandemic, which severely impacted Cathay Pacific due to strict travel restrictions in Hong Kong. The airline experienced over 98% passenger traffic reductions during the pandemic, delaying recovery. It was among the slowest carriers to rebound but finally turned a profit in late 2023 after years of restructuring.
With these measures, Cathay Pacific hopes to position itself for a prosperous future by 2030, despite the slower growth projections. The airline is committed to balancing cost management with investment in new technologies to enhance competitiveness moving forward.
