12,000 BA workers' jobs are at risk. (AP Photo/Frank Augstein, File)Thousands
of workers at British Airways (BA) could face redundancy as the airline
slashes jobs in a bid to stay afloat during the coronavirus crisis.The airline’s owner, International Consolidated Airlines Group (IAG.L), announced on Tuesday that as many as 12,000 BA workers could be made redundant as a result of the collapse in demand for air travelBA’s website says the company employs around
45,000 staff, suggesting the cuts could see a quarter of its entire
workforce lose their jobs. It says it employs around 16,500 cabin crew
and 3,900 pilots, though the latest update did not detail which staff
would be affected.The sector has seen revenue plummet as demand
for flights has nosedived and some governments have curbed air travel
altogether, sparking a wave of cost-cutting measures. BA’s parent
company warned a hoped-for recovery in travel could take “several
years.”BA had previously announced that more than 22,000 workers
had been furloughed as part of the UK job retention scheme, taking paid
leave through a government subsidy for their wages.IAG
said its passenger capacity in April and May had fallen by 94% compared
to last year, with only flights for essential travel and repatriation
continuing to operate.IAG said in a statement on Tuesday: “In
light of the impact of COVID-19 on current operations and the
expectation that the recovery of passenger demand to 2019 levels will
take several years, British Airways is formally notifying its trade
unions about a proposed restructuring and redundancy programme.“The
proposals remain subject to consultation but it is likely that they
will affect most of British Airways' employees and may result in the
redundancy of up to 12,000 of them.”The announcement came in
IAG’s first quarter results, published shortly after 5pm in London on
Tuesday (28 April). IAG said its total revenue had slumped by 13% to
€5.3bn ($5.7bn, £4.6bn) compared to a year earlier.It swung into
losses in the first quarter, with its operating profit, excluding
‘exceptional’ items, down from €135 million last year to a loss of €535
million. The company also said it would not provide profit guidance for
2020, but said it expected its operating loss in the second quarter to
be significantly worse than the first quarter.12,000 BA workers' jobs are at risk. (AP Photo/Frank Augstein, File)Thousands
of workers at British Airways (BA) could face redundancy as the airline
slashes jobs in a bid to stay afloat during the coronavirus crisis.The airline’s owner, International Consolidated Airlines Group (IAG.L), announced on Tuesday that as many as 12,000 BA workers could be made redundant as a result of the collapse in demand for air travelBA’s website says the company employs around
45,000 staff, suggesting the cuts could see a quarter of its entire
workforce lose their jobs. It says it employs around 16,500 cabin crew
and 3,900 pilots, though the latest update did not detail which staff
would be affected.The sector has seen revenue plummet as demand
for flights has nosedived and some governments have curbed air travel
altogether, sparking a wave of cost-cutting measures. BA’s parent
company warned a hoped-for recovery in travel could take “several
years.”BA had previously announced that more than 22,000 workers
had been furloughed as part of the UK job retention scheme, taking paid
leave through a government subsidy for their wages.IAG
said its passenger capacity in April and May had fallen by 94% compared
to last year, with only flights for essential travel and repatriation
continuing to operate.IAG said in a statement on Tuesday: “In
light of the impact of COVID-19 on current operations and the
expectation that the recovery of passenger demand to 2019 levels will
take several years, British Airways is formally notifying its trade
unions about a proposed restructuring and redundancy programme.“The
proposals remain subject to consultation but it is likely that they
will affect most of British Airways' employees and may result in the
redundancy of up to 12,000 of them.”The announcement came in
IAG’s first quarter results, published shortly after 5pm in London on
Tuesday (28 April). IAG said its total revenue had slumped by 13% to
€5.3bn ($5.7bn, £4.6bn) compared to a year earlier.It swung into
losses in the first quarter, with its operating profit, excluding
‘exceptional’ items, down from €135 million last year to a loss of €535
million. The company also said it would not provide profit guidance for
2020, but said it expected its operating loss in the second quarter to
be significantly worse than the first quarter.
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