Emirates and Etihad Airways extend staff pay cuts to September

As the Coronavirus pandemic weighed on global demand for air travel, Gulf’s leading airlines, Emirates and Etihad Airways had resorted to slashing staff salaries in April to preserve cash. The move was originally planned for three months, bound to end in June.

In an announcement on Sunday, however, the two air carriers said that their staff will now continue to work on reduced pay until 30^th September. The extension, as per the two companies, is ascribed to the rising COVID-19 uncertainty and an inability to predict when the demand will recover.

Emirates may also broaden pay cuts in the upcoming weeks

Emirates also told its employees that it might have to impose broader pay cuts in the upcoming weeks. Basic salaries, in some cases, may be reduced to 50%. The state-owned flagship air carrier also highlighted that the decision was finalised only after exploring all alternative options to shore up finances amidst the pandemic.

Initially, Emirates had announced a 25% to 50% cut on salaries in April. The pay cut was planned for three months and exempted junior employees.

Emirates did not respond to a request for comment. As of March, the Group had a workforce of 105,000.

The global aviation industry has taken the hardest hit due to the ongoing health crisis that has halted travel and tourism in recent months. Several airlines have been pushed into grounding fleets, slashing flights schedule, and deferring jets deliveries. Amidst the chaos, Airbus hinted on Friday that it might pursue litigation against air carriers that dishonour existing contracts.

Etihad Airways to slash its workforce by 1,200 employees

In March, Emirates and Etihad Airways suspended passenger flights to minimise the fast spread of the novel flu-like virus. In recent months, the two air carriers have sustained only limited operations.

As the United Arab Emirates started easing COVID-19 restrictions at the end of May, the two airlines are expected to resume some connecting flights later in June.

Etihad Airways had also announced a 25% to 50% cut on salaries in April to cushion the economic blow from COVID-19. In May, Abu Dhabi’s flagship air carrier also announced plans of laying off roughly 1,200 employees.

Their leading Gulf competitor, Qatar Airways, also hinted recently that it will have to resort to slashing its workforce by 20% if demand doesn’t pick up in the upcoming weeks.