British Airways set to cut up to 12,000 jobs

British Airways set to cut up to 12,000 jobs

British Airways set to cut up to 12,000 jobs

"The group expects its operating loss in the second quarter to be significantly worse than in the first quarter, given the substantial decline in passenger capacity and traffic and despite some relief on employee costs from government job retention and wage support schemes", said Stephen Gunning, chief financial officer at IAG.

In a statement, IAG said: "The proposals remain subject to 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".

It said total revenue fell 13pc to €4.6bn in the first three months of the year, while before exceptional items it made a €535m loss.

The proposed restructuring and redundancy programme is necessary as demand for travel is unlikely to reach demand seen in 2019 for several years, the airline said.

International Consolidated Airlines Group SA (IAG), which owns British Airways, reported a first-quarter operating loss reflecting the full extent of travel lockdowns during the pandemic.

IAG SA will slash the work force at its flagship British Airways by nearly 30% in a painful restructuring aimed at shrinking the airline group to make it through a downturn that could last for years.

These were the details of the news Coronavirus: British Airways looks at cutting up to 12,000 jobs for this day.

At the beginning of the month, the airline also said that it was trying to avoid making staff redundant.

"The operating result in the first two months of 2020 was similar to that of previous year, despite the suspension of flights to China due to Covid-19 from the end of January", noted IAG.

Alongside IAG's statement, BA chief executive Alex Cruz wrote in a letter to staff: "In the last few weeks, the outlook for the aviation industry has worsened further and we must take action now".

The carrier, which has approximately 45,000 employees including around 4,000 pilots and 16,500 cabin crew, has already furloughed almost 23,000 staff.

Pilots represented by Balpa said they were surprised by the move, especially since IAG said it was wealthy enough to weather the storm.

Airlines across the world have warned they face a fight for survival.

Cruz said BA, which has placed 22,600 people on the United Kingdom government's furlough scheme, "cannot expect the taxpayer to offset salaries indefinitely".

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