Hong Kong flag carrier Cathay Pacific Airways may find itself in a weaker position in the race for global talent, an analyst has said, after two of the airline’s major rivals dished out heftier bonuses for at least two straight years.
Singapore Airlines (SIA) offered employees a profit-sharing bonus equivalent to 7.45 months’ pay after reporting a record net profit of S$2.78 billion (US$2.15 billion) for 2024-25, surpassing analysts’ expectations.
The amount is slightly lower than the 7.94 months’ bonus it dished out last year, despite a 3.9 per cent increase in SIA’s net profit.
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Dubai-based airline Emirates’ employees are also in line for a windfall after its group announced last week a record-breaking pre-tax profit of US$6.2 billion for the 2024-25 financial year, with staff set to receive a 22-week bonus payout.
Emirates, the most profitable airline in the world over the reporting period, has committed big bonuses to its ever-growing workforce for three years running. It awarded a 20-week bonus to employees in 2024 and a 24-week one in 2023.
By comparison, Cathay Group’s net profit rose 1 per cent year on year to HK$9.9 billion (US$1.28 billion) in 2024, up from HK$9.78 billion in 2023, which was the first time it recorded a profit in four years. The company had accumulated a string of large deficits totalling HK$34 billion over three years when the Covid-19 pandemic crippled the travel industry.
The group previously announced an average salary increase of 3.8 per cent for its employees this year, matching the raise in 2024. It would be topped with a 6.2-week profit-sharing bonus for employees, compared with 7.2 weeks last year.
SIA remains one of the best-paying airlines for cabin crew in Asia, as it aims to continue attracting the best global talent to stay ahead of other competitors, including regional ones such as Cathay Pacific, Malaysia Airlines and Thai Airways.
According to online reports, the carrier’s flight attendants reportedly earn a monthly salary of between S$2,000 and S$5,000, depending on their experience, type of aircraft they work on, seniority and flying hours. Employees rostered on long-haul flights to Australia, Europe and the United States can earn as much as S$75,000 in a year.
By comparison, Emirates flight attendants earn a tax-free monthly average salary of US$4,110, which includes their basic salary and flight allowances, but excludes additional housing allowances that can go up to US$13,600 a year.
At Cathay Pacific, new hires of cabin crew are paid a starting salary of HK$9,400 per month, which may increase to as high as HK$20,000 after taking into account additional flying hours. Foreign flight attendants may also receive a housing allowance of up to HK$7,000 per month.
Before its return to profitability, Cathay shed a record 5,900 jobs in Hong Kong and axed its regional airline Cathay Dragon in a HK$2.2 billion restructuring plan in October 2020. Remaining aircrew and pilots were offered cost-cutting contracts that slashed pay by over 40 per cent, while housing and retirement benefits for pilots were also reduced.
The Post contacted the carrier for comment, but it did not reply by the time of publication.
Jason Li Hanming, a US-based aviation analyst, said he would not be surprised if a number of Cathay crew members quit their jobs for other, more profitable airlines that paid better and offered more lucrative bonuses.
“I do expect there will be employees leaving Cathay in the coming months, especially when Singapore Airlines and Emirates are also looking for people willing to work [for them],” he said.
But Li added that Cathay had an attraction over the others in that its crew could get permanent residency in Hong Kong after seven years of employment.
He said that unlike the other two airlines, which were backed by their governments, Cathay was a private company that had to be prudent in spending so it could build up more cash for other investments and facility upgrades to stay competitive among premium carriers.
SIA is majority-owned by Singapore’s government investment and holding company Temasek Holdings, while Emirates is wholly owned by the government of Dubai.
Li also stressed that the airline needed to work much harder to repay the government for the bailout that allowed Cathay to ride out the Covid-19 pandemic, and make up for lost time as the carrier’s competitors had recovered more quickly after opening up from travel lockdowns a year sooner.
“[Cathay will] have to rebuild all the things necessary for them to compete in the international market,” he said.
“For example, if you don’t have the facilities for passengers such as new aircraft, and refreshed cabins and lounges, especially for the wealthy ones, then you cannot sell your business class ... This will be a downward spiral.”
A Cathay flight attendant, who asked to remain anonymous, said her unhappiness with the company was less about the relatively smaller bonuses than the drastic cut in salaries in previous years.
“Most of the cabin crew are earning less than HK$10,000 in basic salary. The bonus means nothing to them after calculating the deep cut in their pay,” she said.
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