British Airways parent IAG to cut flight capacity 75% in April/May

By: |
March 16, 2020 3:35 PM

Air France said it would slash flight capacity by 70-90 percent over the next two months due to the coronavirus outbreak.

british airways, coronavirusIAG said that a management shake-up had been put on hold, noting that Willie Walsh would remain as chief executive.

IAG, owner of British Airways and Spanish carrier Iberia, said Monday it would slash the group’s flight capacity by 75 percent during April and May owing to the coronavirus outbreak.

“For April and May, the Group plans to reduce capacity by at least 75 percent compared to the same period in 2019,” it said in a statement.

Air France also said Monday it would slash flight capacity by 70-90 percent over the next two months due to the coronavirus outbreak.

Capacity could be cut “by 70 to 90 percent,” Air France said in a statement, adding that as a result it expected its financial situation to be “badly impacted” compared with previous forecasts.

Separately, British no-frills airline EasyJet said it may have to ground “the majority” of its fleet over COVID-19, warning there was no guarantee European airlines would survive a long-lasting freeze in air travel.

As part of its drastic action, IAG said it was “cutting non-essential and non-cyber related IT spend, freezing recruitment and discretionary spending, implementing voluntary leave options, temporarily suspending employment contracts and reducing working hours”.

IAG added that a management shake-up had been put on hold, noting that Willie Walsh would remain as chief executive.

Walsh had been due to step down on March 26, to be replaced by Iberia CEO Luis Gallego.

“As we respond to COVID-19, Willie, Luis and the board of IAG have decided that management stability across the Group should be a priority in the near term,” said IAG chairman Antonio Vazquez.
“We are grateful that Willie has agreed to delay his retirement for a short period at this challenging time,” he added.

EasyJet CEO Johan Lundgren meanwhile said that “coordinated government backing will be required to ensure the industry survives and is able to continue to operate when the crisis is over.”

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1National SC-ST Hub: 50% jump in funds released for SC-ST entrepreneurs to boost entrepreneurship in FY21
2All iPhone, iPad users must install this security update immediately; Here’s why
3Why does Apple hate product leaks? This letter gives an insight