Cathay Cuts Capacity, Staff To Take Unpaid Leave

Cathay Pacific Airway said on Friday it would cut passenger and cargo capacity from May following a sharp drop in turnover in the first quarter of 2009.

The Hong Kong-based airline is requesting its staff to take unpaid leave over the course of the next 12 months, it said in a statement.

From May, Cathay will reduce passenger capacity by 8 percent and its Dragonair unit will cut capacity by 13 percent. Overall cargo capacity will be reduced by 11 percent.

The company said turnover derived from passenger and cargo services in the first quarter fell 22.4 percent from a year ago.