HONG KONG - Cathay Pacific, Asia's third-largest carrier, has asked staff to take unpaid leave.

The airline also plans to cut passenger and cargo capacity, the company said in a statement.

The Hong Kong flagship carrier is requesting that its employees across the board take unpaid leave in the next 12 months, according the statement filed to the Hong Kong Stock Exchange and reported by AP.

Cathay Pacific said it would reduce planned passenger capacity by eight per cent and that of its subsidiary Dragonair by 13 per cent starting next month.

It also planned to cut cargo capacity by 11 per cent.

Turnover derived from passenger and cargo services of both airlines in the first quarter was 22.4 per cent lower compared to the same period last year, the company said.