Hong Kong Airlines delays salary payments as protests take their toll

Hong Kong Airlines has delayed the payment of salaries for almost half of its staff members as widespread protests in the city have hit the carrier.

Only cabin crew and overseas employees will receive their November wages on time, while all other Hong Kong-based workers will be paid on 6 December, the airline said in a statement.

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The airline said revenue dipped significantly in November – a low travel season – impacting the monthly payroll.

Hong Kong Airlines, which was battling tough trading conditions even before pro-democracy protests began six months ago, has also stopped operating some of its routes in a bid to cut costs.

The challenges have also begun to take their toll on flag carrier Cathay Pacific, which has cut its capacity plan for 2020.

The airline is set to cut passenger flight capacity by 1.4 per cent next year, reversing an earlier plan for a 3.1 per cent boost, according to an internal memo seen by Reuters.

It comes after Cathay Pacific cut its second-half profit guidance, marking the second cutback in less than a month, as protests have deterred people from travelling to Hong Kong.

“Given the immediate commercial challenges and the fact that our position has deteriorated in recent weeks, we must take swift action to adjust our budget operating plan for 2020 downwards again,” chief executive Augustus Tang said in the memo.

“Put another way, rather than growing our airlines in 2020, for the first time in a long time, our airlines will reduce in size.”

Revenue performance continues to be disappointing and advance bookings are lower that expected, the memo added.

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Hong Kong has enjoyed a week of relative calm since a landslide victory for pro-democracy candidates in local elections on Sunday.

Earlier this week US President Donald Trump signed two bills supporting the protesters, sparking anger in Beijing.