Cathay Pacific reportedly cuts marketing staff in latest AI push

Hong Kong flagship carrier Cathay Pacific is reportedly reducing marketing and administrative staff as part of a broader cost-saving initiative to fund investments in artificial intelligence.

Bloomberg reports that Cathay CEO Ronald Lam informed his leadership team and managers last week of a new cost-reduction target focused on headquarters and back-office operations over the next five years.

As part of the initiative, Lam has instructed all divisions to identify cost savings and operational efficiencies of 5% for 2026, as the airline anticipates a slower pace of growth in the coming year. The cost-cutting measures will primarily affect non-operational roles, with departments such as marketing and administration expected to undergo restructuring to incorporate AI and automated solutions.

Overall, the airline aims to reduce administrative costs by 20% by the end of 2030, according to the report, as it seeks to safeguard profitability amid rising competition and the growing influence of AI.

While some teams and job functions will be consolidated, others will see staff redeployed. However, the company emphasised that only a limited number of roles will be eliminated across both its Hong Kong and overseas offices.

Despite the restructuring, Cathay has reaffirmed its commitment to growth, with plans already in place to recruit 3,000 new employees - bringing total headcount to over 34,000 by the end of 2025.

Cathay told local media including RTHK that it regularly reviews and adjusts its organisational structure both in Hong Kong and internationally to stay aligned with its business development and long-term strategic objectives. The group also highlighted its ongoing recruitment efforts in the Hong Kong market, aiming to capitalise on opportunities presented by the three-runway system and other favourable conditions.

MARKETING-INTERACTIVE has reached out to Cathay for a statement. 

The company's restructuring comes after a year of rapid expansion, including the launch of 20 new destinations. In November 2025, Cathay launched daily flights to Changsha and a seasonal service to Adelaide, while HK Express introduced daily flights to Kota Kinabalu (Sabah).

At the same time, the Cathay Group projected strong financial results for the second half of the year, supported by increased capacity, solid passenger load factors, and resilient cargo demand. These gains were partially offset by losses from HK Express, attributed to several factors that dampened travel demand to Japan.

Additionally, the Group’s second-half results include approximately HK$0.9 billion in Other Income, stemming from a one-time gain related to a supplier settlement agreement.

Cathay Group said it expects full-year profit for 2025 to surpass the HK$9.88 billion recorded the previous year - marking what could be its first year-on-year profit growth in a decade.

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