The Civil Aviation Department (CAD) on Monday criticised Cathay Pacific for a lack of experience and digital capabilities in forecasting crew resources, which led to major flight cancellations over Christmas and New Year.

Cathay Pacific said it had since improved its organisation and resource planning systems and assured the government that it wouldn't face similar cancellations over the upcoming Easter holidays.

The airline cancelled nearly 800 flights in December and January, sparking public anger and a government order for a report into its operations.

"Cathay Pacific Airways' report revealed that the flight cancellations were contributed by a number of factors, including its internal planning issues and under-estimation of pilot reserve levels which indicated its ineffective crew planning process," the CAD told Legco economic development panel.

In the report, the airline admitted that it didn't keep detailed records of pilots' flying hours and underestimated the number of replacement pilots it needed to cover those who called in sick.

The airline said it was aware that there was a legal limit which stated that pilots could not fly more than 900 hours in a year, but it had not previously tracked this in detail.

"The 900 block hour annual limit is a published legal limit that protects against fatigue, and one which Cathay Pacific is fully aware of, however, it had not previously been a significant impediment to the operation and, as such, it was not tracked to the level of detail that has now become necessary," the airline said in the report.

To address this, the airline said it had implemented digital solutions to improve planning.

Meanwhile, the government also advised Cathay Pacific to support Hong Kong's strategic development by exploring new destinations on the mainland, in Southeast Asia, the Middle East and Eastern Europe.