In a statement, parent company IAG says that British Airways had notified the unions about the restructuring programme that will affect the majority of employees and “can lead to a reduction of up to 12 thousand jobs.” IAG, which also includes Spanish airline Iberia, said that its revenue for the first quarter decreased 13% to 7.6 billion, and it suffered an operating loss of 890 million dollars. Over the same period last year a group of airlines made a profit in the amount of 135 million euros.
Experts have warned that second-quarter losses will be “significantly worse” and, according to analysts, the recovery of passenger demand to the level of 2019 will take several years, notes The Guardian. This fact was confirmed by General Director of British Airways Alex Cruz in a letter to employees. “Yesterday, British Airways flew from London Heathrow with just a few planes. On a normal day we make more than 300 flights,” he added. Brian strutton for the away team, the Secretary General of the pilots Union Balpa, said that the syndicate will fight for every job. “The pilots and all the staff are devastated by the announcement of 12 thousand possible job losses at British Airways,” said he.
British Airways ‘ Statement echoes the message of Lufthansa, which owns national carriers in Germany, Switzerland, Austria and Belgium. The company has previously announced that it is forced to constantly reduce the number of flights. The management of Lufthansa said that a worldwide recovery in demand for air travel will take years.
the ban on flights and blocking threaten to bankrupt airlines worldwide. According to the International air transport Association, the growing financial crisis faced by carriers can lead to a drop in income up to 55 percent in 2020, or loss in the financial equivalent of about 483 billion dollars. Some of the companies have appealed to the authorities of their countries for help, arguing about the impending bankruptcy.
So, on the verge of ruin was Virgin Atlantic, controlled by the Virgin Group sir Richard Branson, who has requested a commercial loan from the UK government.
