A cashflow “shortfall” due to travellers deferring or cancelling trips to Hong Kong because of the ongoing anti-government protests has led to Hong Kong Airlines telling employees they may be asked to take unpaid leave or cut their working hours, the South China Morning Post reported.

In a note to staff on August 27, the airline, which according to Reuters lost HKD3 billion Hong Kong dollars (USD383 million) last year, blamed its financial turmoil on the demonstrations.

“As you are aware, hundreds of our flights in and out of Hong Kong were cancelled because of public assemblies at the airport [...] which impacted on our cashflow,” the note said.

The airline carried 13% fewer passengers during August, year-on-year, while bookings for September to December have plummeted by 30%. Its larger rival Cathay Pacific has also warned of a “significant” revenue impact from the protests.

“To let us get prepared for the foreseeable difficult time in Hong Kong, you are encouraged to clear your unused annual leave and the company will also consider implementing additional measures, such as part-time options or unpaid leave programmes to all employees across the board,” the company said.

Financial problems at Hong Kong Airlines came to light long before the protests, starting late last year with allegations that it was struggling to pay a large amount of debt, followed by a slew of resignations from the airline's leadership and, earlier this year, months of boardroom turmoil and a shareholder battle for control of the carrier.