British Airways is set to slash up to 12,000 jobs as part of a restructuring plan as the carrier grapples with the fallout of the novel coronavirus pandemic, its parent company IAG said Tuesday.

The firm said it was still deliberating its options but that it was “likely that they will affect most of British Airways’ employees and may result in the redundancy of up to 12,000”.

Passenger demand will take “several years” to return to 2019 levels, it added.

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

The group’s operating result before exceptional items came in at a loss of 535 million euros, compared with a profit of 135 million last year, with the second quarter expected to be worse.

IAG said it had reduced passenger capacity for April and May by 94% compared with the same period last year.

BA chief executive Alex Cruz warned last month of consequences for the airline after the coronavirus pandemic gutted demand.

Recent weeks have seen it operating flights only for essential travel and repatriation of tourists marooned abroad.