China Airlines Ltd (中華航空) yesterday announced that a temporary pay cut program introduced at the start of May to tackle the fallout from the COVID-19 pandemic has ended earlier than originally planned.
China Airlines Employees’ Union president Liu Hui-tsung (劉惠宗) said that the 15 to 25 percent reduction in wages for all company employees in May and last month was ended retrospectively on Tuesday last week, with employees receiving their normal pay from Wednesday last week.
China Airlines chairman Hsieh Shih-chien (謝世謙) agreed to end the pay cut program earlier than originally planned to thank the company’s employees, who he said had done a great job transporting aid, such as masks and personal protective equipment, around the world since the start of the COVID-19 pandemic, Liu added.
Hsieh during a June 23 online shareholders’ meeting said that the airline had not considered laying off employees, even after the pay cut program was introduced.
Citing estimates by the International Air Transport Association, Hsieh said that total revenue in the global aviation industry would fall US$500 billion this year.
China Airlines’ passenger load factor has plunged to about 3 to 4 percent of its regular capacity, with monthly revenue falling to NT$400 million in April and last month.
However, the airline’s 18 cargo planes have boosted its cash flow, posting revenue of NT$7 billion (US$236.65 million) in April and NT$9 billion in May, company data showed.
The business outlook would depend on measures taken by nations to open up their borders, the airline said.
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