Coronavirus impact | British Airways to slash up to 12,000 jobs

Coronavirus impact | British Airways to slash up to 12,000 jobs

British Airways is set to cut up to 12,000 jobs from its 42,000-strong workforce due to a collapse in business because of the coronavirus pandemic.

IAG slumped to an operating result before exceptional items of €535m (£459m) compared to a profit of €135m for the first three months of previous year.

The airline has been largely grounded in tackling the coronavirus and is operating a handful of flights instead of hundreds.

"Recovery to the level of passenger demand in 2019 is expected to take several years, necessitating group-wide restructuring measures".

Commenting on ebit, IAG said: "The operating result in the first two months of 2020 was similar to that of a year ago, despite the suspension of flights to China due to Covid-19 from the end of January", IAG explained in a statement. 22, 2020. United Kingdom inflation slowed in March as the nation entered lockdown and oil prices continued to tumble.

Currently, said the program is under consultation but "it is likely that they will affect most of British Airways' employees and may result in the redundancy of up to 12,000 of them".

IAG aid it needed to impose a "restructuring and redundancy programme" until demand for air travel returns to 2019 levels.

Shares in International Airlines Group (IAG), which also owns Iberia and Vueling, lost 2.2 per cent as preliminary results showed that first quarter revenue fell by 13 per cent to €4.6 billion (US$4.9 billion).

IAG reduced passenger capacity in April and May by 94 per cent compared to past year, only operating flights for essential travel and repatriation.

"We have informed the government and the trade unions of our proposals to consult over a number of changes, including possible reductions in headcount". On a normal day we would fly more than 300.

Alongside the statement by IAG, BA chief executive Alex Cruz wrote a letter directly to staff pledging to "take action" in response to the worsening crisis.

A British Airways plane taxis past tail fins of parked aircraft to the runway near Terminal 5 at Heathrow Airport in London, Britain March 14, 2020.

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"On balance, this should not come as a surprise but we would have preferred more colour on what cost flexibility and cash burn the company expects during the shutdown in the upcoming weeks", Roeska said in a note.

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