Cathay Pacific offers second round of unpaid leave for cabin crew in 2025 as profits edge higher
Cathay Pacific Airways is launching a second round of voluntary three-month unpaid leave for Hong Kong-based cabin crew in 2025, marking the first time such leave has been rolled out in back-to-back quarters since the pandemic. The program, disclosed in an internal memo on August 1 ahead of the airline’s half-year results, will run from October to December 2025, following a first tranche covering July to September this year. The arrangement is entirely voluntary and designed to give crew greater flexibility during the year-end festive season while easing staffing considerations during peak travel periods.
In its half-year update, Cathay Pacific reported a modest 1.1% rise in net profit to HK$3.65 billion (US$465 million). The airline remains confident in meeting passenger demand during high-traffic periods even as it offers more flexible work arrangements. The company has also continued to invest in its fleet, recently placing orders for 14 Boeing 777-9 aircraft, increasing the total planned investment to more than HK$100 billion as it expands to 100 aircraft.
The first round of unpaid leave for 2025 was announced in May and covered up to three months between July and September. The airline, which operates from Hong Kong International Airport, reiterated that the leave option is a long-standing tool to balance personal needs with operational requirements. Leadership emphasized that despite the leave offer, staffing levels are being managed to ensure service levels during peak travel.
Cathay Pacific has been expanding its workforce in the post-pandemic period. Last year, the airline recruited nearly 5,000 cabin crew worldwide, bringing its total staff to more than 30,000. Chairman Patrick Healy has said the recruitment surge has since stabilized and is aligning with long-term growth targets, with recruitment and training returning to more typical levels.
Historically, unpaid leave has been used during downturns, including in 2020 at the height of the pandemic and in 2009 during the global financial crisis. Traditionally, unpaid leave is limited to one month and subject to strict approval, but the current offer expands to as much as three months and appears to be more accessible to staff.
Market watchers note ongoing challenges despite resilient travel demand. An HSBC analyst report downgraded Cathay’s stock from hold to reduce, citing softer yields from expanding long-haul routes, rising operating costs and cargo headwinds stemming from trade tensions and additional capacity from resumed passenger flights. Cargo yields are expected to remain under pressure through year-end, particularly on Transpacific routes where competition and capacity are increasing.
Overall, Cathay remains focused on balancing cost management with strategic network and fleet expansion as it navigates post-pandemic headwinds. The move to offer extended unpaid leave signals a continued emphasis on workforce flexibility to support service quality during peak travel periods, while the fleet investment and stable recruitment point to a longer-term growth trajectory.
Additional context and value:
– What this means for staff: The expanded three-month leave option provides greater personal flexibility without jeopardizing operational staffing, a potentially welcome option for those balancing holiday plans or personal commitments.
– Operational outlook: Fleet expansion and a steady recruitment pace suggest Cathay aims to sustain capacity growth and improve customer experience as travel rebounds.
– Market context: While there are signs of improving demand, profitability remains sensitive to cargo dynamics, yields, and macro headwinds, underscoring the importance of disciplined cost management alongside growth investments.
Summary: Cathay Pacific is continuing its strategy of balancing flexible staffing options with ongoing fleet expansion and selective recruitment as it reports modest profit growth. While analysts warn of headwinds in yields and cargo markets, the airline’s approach indicates a cautious but forward-looking path to sustainable growth as travel demand recovers. A hopeful note is the emphasis on staff flexibility and long-term capacity planning that could help Cathay maintain service levels during peak periods while pursuing its growth agenda.