Assuming full conversion of the bonds and the Hong Kong government's exercise of warrants, top shareholder Swire Pacific's stake in Cathay will be diluted to 37.9 percent from 45 percent and Air China's stake will fall to 25.3 percent from 30 percent, according to the stock exchange filing. Airlines like Cathay Pacific have had to ground hundreds of planes and slash capacity as international travel has ground to a virtual halt. (PHOTO: Shutterstock) Cathay Pacific, which shut its Cathay Dragon unit last year and made 5,900 jobs redundant to save HK$500 million every month, said on Monday it may have to axe a quarter of its profitable cargo capacity because a 14-day quarantine and seven-day medical surveillance proposed by Hong Kong's government would force it to cut its flight capacity by almost two-thirds.