The CEO of Singapore Airlines, the world's biggest by market value, will take a 20 percent pay cut as the carrier looks to cut costs after seeing profits battered by weak travel demand and volatile oil prices.

CEO Chew Choon Seng's management will also see cuts of between 10 and 20 percent from July, while the directors have volunteered for a cut in fees of 20 percent.

The airline said in a statement that it had also agreed with its more than 2,300 pilots to take one day of unpaid leave a month.

The airline has cut capacity this year on a slump in business class passenger travel and cargo demand.

The company said these measures would save S$21 million (US$14.4 million) in this financial year.

Other Singapore-based firms have also cut pay instead of laying off workers, while government ministers have seen reduced performance-related pay in the city-state's worst ever recession.

The global aviation industry is expected to lose US$9 billion this year, the International Air Transport Association (IATA) forecast this month.

The CEO of British Airways, Willie Walsh, is working for no pay next month.