Shares in Cathay Pacific Airways have slumped to an eight-month low as investors began assessing the cost of the 'sick out' by pilots on the carrier's earnings potential.
The stock fell 9.74 per cent to close at $10.65, wiping about $4 billion off its market capitalisation and terminating a recent recovery in its share price.
DBS Securities analyst Peter Milliken estimates the dispute will lose Cathay Pacific $350 million in passenger revenue per week.
'I don't think there will be a strike as even now we can see the majority of pilots are still going to work as usual,' he said.
The threat of Cathay Pacific being able to hire pilots from other airlines would also ensure that the pilots accept the proposals on offer which would still leave them as some of the best paid in the region, Mr Milliken said.
Prudential-Bache has a fair valuation on the stock of $14.50.
