British Airways (BA) has announced plans to lay off up to 12,000 staff in the wake of the coronavirus pandemic that has seen all international passenger flights suspended, resulting in a dip in revenues for the aviation industry.
The job cut affects almost 30% of the airline’s 45,000 workers, of which 22,626 workers have already been placed on a state-subsidized furlough plan.
According to the airline, it has reduced passenger capacity for April and May by 94% compared with the same period in 2019.
We are working closely with partners and suppliers to discuss repayment terms. We are re-negotiating contracts where possible, and we are considering all the options for our current and future aircraft fleet. There is no Government bailout standing by for BA, and we cannot expect the taxpayer to offset salaries indefinitely. Any money we borrow now will only be short-term and will not address the longer-term challenges we will face.
British Airways CEO, Alex Cruz
The airline’s parent company, International Airlines Group (IAG), recorded a $580 million operating loss for the period ended 31st March 2020, compared to a profit of $146 million last year. Furthermore, its revenue dropped by 13% to $5 billion.
Already, the International Civil Aviation Organization (ICAO) estimates that airlines worldwide could face losses amounting to $253 billion by September this year due to COVID-19. At the same time, it estimates airline passengers will have reduced by 1.2 billion owing to the suspension of international passenger flights, with Europe recording the most significant reduction.
British Airways, which is listed on the London Stock Exchange, is the flag carrier airline of the United Kingdom and the second-largest airline in the United Kingdom, based on fleet size and passengers carried.
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