“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.
Qatar Airways Group chief executive, Akbar Al Baker, stated: “Our investment to date has been highly successful and the announced increase in our shareholding is evidence of our continued support of IAG and its strategy.”
The move follows the decision by Willie Walsh to step down as chief executive of International Airlines Group and the subsequent promotion of outgoing Iberia chief, Luis Gallego, to lead the body.
Willie Walsh will step down from his role as chief executive of International Airlines Group later this year. He will stand down from the board on March 26th, and will retire on June 30th.
International Airlines Group is calling on prime minister Boris Johnson and the incoming Conservative government to commission an independent assessment of expansion costs at Heathrow.
Air Europa is one of the leading private airlines in Spain, operating scheduled domestic and international flights to 69 destinations, including European and long-haul routes to Latin America, the United States of America, the Caribbean and North Africa.