Published on : Wednesday, April 29, 2020
According to the proposed restructuring and redundancy programme is necessary as demand for travel is unlikely to reach demand seen in 2019.
British Airways has already furloughed 22,626 of its 42,000 employees through the job retention scheme offered by the government.
Alex Cruz, chief executive of British Airways stated that there is no government bailout standing by for British Airways and they cannot expect the taxpayer to offset salaries indefinitely.
Any money borrowed now will only be short-term and will not address the longer-term challenges they will face now.
He went on saying that they are a strong, well-managed business that has faced into, and overcome, many crises in our hundred-year history and they must overcome this crisis too.
British Airways-parent IAG revealed its financial results for the first quarter and IAG revealed that the total revenue declined by 13 per cent to €4.6 billion compared to €5.3 billion in the prior year period.
Operating result before exceptional items was a loss of €535 million compared to a profit of €135 million last year. Additionally, IAG’s pre-tax profit was impacted by an exceptional charge of €1.3 billion resulting from the ineffectiveness of its fuel and foreign currency hedges for the rest of 2020 due to over-hedging.
Passenger capacity, expressed in terms of available seat kilometres, declined by 10.5 per cent in the quarter while passenger traffic in terms of revenue passenger kilometres declined by 15.2 per cent in the quarter and the seat load factor declined by 4.3 points to 76.4 per cent.
IAG reduced passenger capacity in April and May by 94 per cent compared to last year it operated flights for essential travel and repatriation.
Tags: british airways