SYDNEY — Hong Kong's Cathay Pacific Airways has asked all its 27,000 employees to take three weeks of unpaid leave in coming months as it battles a fall in demand caused by a virus outbreak, the company said on Wednesday (Feb 5).

On Tuesday, the carrier said it planned to cut about 30 per cent of capacity over the next two months, including about 90 per cent of flights to mainland China.

"Today, we are appealing to all employees to participate in the special leave scheme, which will take effect from 1 March and last until 30 June," Cathay said in a statement. "All employees will have the option to take three weeks of unpaid leave in this period."

The leave is not mandatory, a spokeswoman said, but it is encouraged.

The South China Morning Post earlier cited a video recording from Cathay Chief Executive Augustus Tang appealing to employees to help by taking up the leave.

Cathay shares were trading 2.1 per cent higher as of 0730 GMT on Wednesday following the announcement of capacity cuts after the market closed on Tuesday.

In a note to clients, Jefferies analysts estimated the airline would report a loss in the first half of 2020 before returning to a profit in the second half, assuming traffic rebounds as it did with the 2003 SARS epidemic. REUTERS