Coronavirus: Emirates and Etihad Airways extend 50% pay cuts until September

Airlines Emirates and Etihad Airways are extending their 50% staff pay cuts until September in a bid to preserve cash during the global coronavirus pandemic.

Dubai-based Emirates sent an internal memo to employees today announcing it would be extending a three month wage cut until September 30, reports Reuters.

The state-owned airline had previously reduced basic wages by 25% to 50% for three months from April, with the exception of junior employees.

The salary reduction will be applied to all staff at grades 4 and above. In some cases, pay cuts will be deepened, with some basic salaries reduced by 50%, the email to Emirates Group employees said.

“We continue to navigate the impact of COVID-19 on our business and are reviewing all possible options to preserve our cash position,” said the memo, also viewed by Bloomberg.

Emirates have not formally commented on the memo.

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Abu Dhabi’s Etihad Airways has also extended its salary cuts to September, a spokesperson said.

Junior staff and cabin crew will continue to see a 25% reduction whilst employees at manager level and above will lose 50%. Benefits such as housing allowances will continue to be paid.

Last week Etihad laid off some cabin crew but it is not planning any further crew redundancies, according to other emails seen by Reuters.

Both of the state airlines have been operating limited services since the widespread grounding of passenger flights was implemented in March.

Emirates is due to restart some connecting flights this month after the UAE lifted a suspension on services where passengers stop off in the country to change planes, or for refuelling.

But Emirates Group may still be forced to cut jobs by 30% from its workforce of 105,000, the company said last week.