Christmas chaos for Cathay passengers on the cards as pilots start work-to-rule action

As Cathay Pacific pilots embarked on a work-to-rule action yesterday, the airline avoided a similar Christmas slowdown by its cabin crew members when their union accepted a pay rise of 4.5 per cent for most employees.

The airline said yesterday that it would offer the 4.5 per cent increase to more than 90 per cent of its cabin crew and ground staff for next year. Senior staff members will get wages of 3.9 per cent to 4.4 per cent more.

There would also be a bonus of one month's pay, Cathay said.

With the compromise, the Cathay Pacific Airways Flight Attendants Union has backed down from its initial demand of an 8 per cent rise.

Cathay had faced the prospect of multiple labour actions during the busy holiday travel season, but has so far been able to stave off large-scale disruptions.

First-half net profit rose to HK$347 million from HK$24 million in the same period last year, but that still fell short of the company's expectations.

"In the first half in particular, we were buffeted by high fuel prices, weak cargo demand and continued pressure on passenger yield," Cathay chief executive Ivan Chu said.