International Airlines Group has reported an operating loss of €1.3 billion before exceptional items for the second quarter, compared to a profit of €960 million last year.
Having reached nine years in office last January, the maximum recommended in the UK corporate governance code, Antonio Vázquez will step down in January.
The short-haul division of International Airlines Group budget carrier Level is filing for insolvency. Branded as Level Europe, the division was operated by Anisec Luftfahrt.
International Airlines Group chief executive, Willy Walsh, has rejected claims British Airways is acting unfairly toward staff as it seeks to downsize in the wake of the Covid-19 outbreak.
Unite has informed EU commissioner for competition, Margrethe Vestager, that it intends to act as a third party opposing the acquisition of Air Europa by International Airlines Group.
“The industry will adapt to new requirements in the same way that it has adapted to developments in security requirements in the past,” said IAG chief executive Willie Walsh.
British Airways has begun discussions with unions over as many as 12,000 job cuts at the airline. The proposed restructuring and redundancy programme is necessary as demand for travel is unlikely to reach levels seen in 2019 for several years, the airline said.
British Airways is making use of the Covid-19 job retention scheme on offer in the UK, with as many as 30,00 staff set to be furloughed. Under this scheme, employees will receive 80 per cent of their base pay and of certain allowances.
Stephen Gunning, chief financial officer for the company, said all profit for the financial year would now be allocated to the voluntary reserve in order to protect the liquidity of the company.
British Airways-owner IAG added it was exploring a number of operational and treasury initiatives to improve further its cash flow and liquidity and would update the market in due course.
International Airlines Group plans to cut capacity by at least 75 per cent in April and May as the company battles the coronavirus pandemic around the world. In light of the situation, chief executive Willie Walsh has also postponed his retirement.
International Airlines Group has seen operating profit before exceptional items fall 5.7 per cent, to €3,285 million, for the year to December 31st. The group said it was currently unable to offer guidance on its 2020 financial performance as a result of the spreading coronavirus.