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Hong Kong flag carrier Cathay Pacific rose on Friday on reports the airline was planning a 30 per cent reduction in management costs at its head office after it reported its first annual loss in eight years.

Shares in the company gained as much as 2.5 per cent after the Hong Kong Economic Times said the carrier plans to make cost savings at middle and senior management levels in Hong Kong as part of a three-year review.

Cathay reported a net loss for 2016 of HK$575m ($74m) on Wednesday on increased competition from mainland Chinese carriers and a fall in the number of premium class passengers.

The benchmark Hang Seng Index was up 0.3 per cent.

Copyright The Financial Times Limited 2017. All rights reserved.

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