Coronavirus crisis: British Airways set to slash as many as 12,000 jobs; Q1 losses widen

British Airways has 45,000 employees, including 16,500 cabin crew and 3,900 pilots, according to its website.

Reuters April 29, 2020 07:56:12 IST
Coronavirus crisis: British Airways set to slash as many as 12,000 jobs; Q1 losses widen

London: British Airways plans to cut as many as 12,000 jobs in response to the coronavirus crisis that means that passenger numbers will take years to recover, its owner International Consolidated Airlines Group said on 28 April.

IAG, which also owns Iberia, Aer Lingus and Vueling, reported first-quarter operating losses before exceptional items of 535 million euros ($580 million), compared with a profit of 135 million a year ago. Revenue dropped 13 percent to 4.6 billion euros.

IAG warned it expects results to get worse in a statement also setting out plans for a sweeping restructuring at BA.

Pre-tax profits were hit by an exceptional charge of 1.3 billion euros due to overhedging of its fuel and foreign currency needs for the rest of 2020, it said.

Coronavirus crisis British Airways set to slash as many as 12000 jobs Q1 losses widen

File image. Reuters

Echoing comments from rivals such as Lufthansa, the airline said it will take several years for passenger demand to return to 2019 levels.

Operating losses in the second quarter will be significantly worse than in the first three months of the year given the decline in passenger capacity and traffic despite some relief from government job retention and wage support schemes, it said. It didn’t give 2020 profit guidance.

British Airways has 45,000 employees, including 16,500 cabin crew and 3,900 pilots, according to its website.

“British Airways is formally notifying its trade unions about a proposed restructuring and redundancy programme,” the statement added.

“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.”

The measures come after IAG boss, Willie Walsh, a dealmaker who made his name standing up to unions and cutting costs, last month put off plans to retire to deal with the industry's worst crisis.

Updated Date:

also read

Worried after Nepal plane crash? Remember, air travel is safe, but can be made safer: Here’s how
Opinion

Worried after Nepal plane crash? Remember, air travel is safe, but can be made safer: Here’s how

Instead of thinking about all the ways that you can die, learn the ways that you can survive.

Over 27 plane crashes in 30 years: Why Nepal's mountains aren't the only reason for its poor air safety record
World

Over 27 plane crashes in 30 years: Why Nepal's mountains aren't the only reason for its poor air safety record

Sunday's air crash involving Yeti Airlines is yet another black mark on Nepal’s air safety record. While the topography and wild weather make it difficult to fly in the Himalayan kingdom, the use of dated technology and lack of reforms in the aviation sector are also to blame for the tragedies

The Sky is Crying: Nepal in grief after terrible air crash
Photos

The Sky is Crying: Nepal in grief after terrible air crash

A pall of sorrow hangs low over Nepal after a Yeti Airlines plane, with 72 people on board, crashed in Pokhara on Sunday. Officials have hinted that there’s little to no hope of finding any survivors from the crash site