In unwelcome news today, IAG owned British Airways is planning to cut 12,000 jobs from its 42,000 workforce and making their roles redundant.
British Airways Boeing 787-9 Dreamliner approaching Heathrow – Image, Economy Class and Beyond
The news comes during IAG’s first quarter results, with total revenue declined by 13 per cent to €4.6 billion. The results in the first two months of 2020 was similar to that 2019, despite the suspension of flights to China due to COVID-19 from the end of January. However, March came along. The majority of the reduction in IAG’s operating result was incurred by British Airways, followed by Iberia and Aer Lingus, while Vueling experienced a modest increase in operating loss.
Passsenger Capacity has been hit hard – down 94% compared to last year.
The airline states
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.
As previously announced, British Airways has availed itself of the UK’s COVID-19 Job Retention Scheme and furloughed 22,626 employees in April.
BALPA is unimpressed stating, with General Secretary, Brian Strutton stating:
“BA pilots and all staff are devastated by the announcement of up to 12,000 possible job losses in British Airways.
“This has come as a bolt out of the blue from an airline that said it was wealthy enough to weather the COVID storm and declined any Government support.
“BALPA does not accept that a case has been made for these job losses and we will be fighting to save every single one.”
Several Years to Recover
With IAG expecting its operating loss in the second quarter to be significantly worse than in the first quarter, given the substantial decline in passenger capacity and traffic, its going to be a tough time for anyone.
Especillly those who are losing their jobs to help the group survive.
And this isn’t the end sadly. Tucked in the last line of the release is this quote
“Recovery to the level of passenger demand in 2019 is expected to take several years, necessitating Group-wide restructuring measures.”
Sadly, more job losses will be on the way sooner rather than later. Where the axe will fall, is the question everyone will need answers too.
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