THE 17-day Lunar New Year strike by Cathay Pacific flight attendants cost the company $240 million, it revealed for the first time yesterday. Cathay managing director Rod Eddington, announcing a 46 per cent drop in interim profits to $681 million, blamed the strike for about half of the hefty fall. The rest he attributed to continuing recession in its major overseas markets, particularly Europe and Japan. Mr Eddington emphasised that the figure of $240 million was only a guess because it was impossible to accurately calculate how much the airline had suffered in lost revenue and market share. He said the bulk of the money had been spent chartering other airline's planes in a bid to keep passengers moving during the busy Lunar New Year holiday period. Cathay renewed its criticism of Hong Kong's high inflation rate during yesterday's meeting. In a bid to protect its profits, the company has embarked on a major cost-cutting campaign dubbed Operation Better Shape. This has already resulted in a number of its operations being shifted to cheaper off-shore bases, he said. Mr Eddington said this productivity campaign would continue and cover all aspects of the company's business. He would not rule out cutting average cabin crew numbers if the airline found this could be achieved without reducing standards. The Lunar New Year strike was provoked by disagreement between employees and management over staffing levels. It was launched on January 13 by the 3,800-member Flight Attendants' Union to protest against the sacking of three cabin crew who refused to perform duties below their grade.