DUBAI, June 2 (Reuters) - Cathay Pacific is on

track to reach 100% of its pre-pandemic passenger flights by the

first quarter of 2025, having reached 80% of capacity within the

second quarter of this year, CEO Ronald Lam said on Sunday.

Hong Kong's flagship airline, which made heavy losses and

layoffs during the pandemic, had aimed to reach 100% capacity by

the end of 2024, but in March moved the target back three

months.

Cathay reported its first annual profit in four years in

March, however executives said they expect yields to normalise

this year as the post-pandemic global imbalance between supply

of flights and travel demand that drove up ticket prices and

airline yields diminishes as airlines add capacity.

"Indeed we're seeing that this year ... the yield has

been normalizing gradually coming down from last year. In

particular, the supply and demand balancing is going quicker on

the regional, the short haul routes," Lam told reporters during

an airline conference in Dubai.

The carrier restored capacity more slowly after the

pandemic than its closest rival, Singapore Airlines,

because it faced tighter quarantine rules for longer, and needed

to hire more staff to bring back services.

Lam said Cathay's plan to expand its workforce by around

20%, or 5,000 people, this year was also on track.