Cathay expects loss resulting from industrial action less than HK$500m

James W J Hughes-Hallett, Chairman of Cathay Pacific Airways (0293), said this morning that he is surprised at the decision of the pilots' union to continue the "work-to-rule" campaign. The company will keep talking with the pilots for the matter of pay and benefits. The company is now evaluating the loss incurred by the industrial action of the pilots, believing the loss will be lower than the HK$500 mln as expected by analysts. Hughes-Hallett added that the airline has not made provisions for the industrial action, but the related cost will be reflected in the interim results. He did not respond directly on whether the release of chartered aircraft will be affected by the new decision of the pilots, hoping the airline's operation will be back to normal operation this week. He expected the Hong Kong-New York flight will not be officially launched until early next year.

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