British airways is probably going to drop more than one-quarter of its employees due to the pandemic Coronavirus gets its toll on the biggest European Airlines.
On Tuesday, parent firm IAG told in a statement that British Airways is informing workers union about rearranging program which would impact most workers and cause reduction up to 12,000 of them.
IAG, which also holds Spanish airline Iberia, told about its first-quarter income drops thirteen percent to five billion dollars, and it fluctuated to an operating loss of around 579 million dollars.
British Airways may be forced to cut more than a quarter of its workforce as the coronavirus pandemic takes its toll on one of Europe’s biggest airlines https://t.co/qMtQGLnL7o
— CNN (@CNN) April 28, 2020
British airline group warned for the second quarter that it would be significantly worse than the first quarter and even expects that the airline will get several years to recover to the 2019 level.
These warnings also made by the Lufthansa airline group (DLAKY), which keeps national carriers in Australia, Belgium, Switzerland, and Germany. The company announces earlier this month that it was going to reduce the size of its fleets permanently and closing its low-cost carriers. The company added that demand for air travel all around the world would take many years to recover from the damage created by the pandemic Coronavirus.
Alex Cruz, CEO of British Airways, said in a letter to staff that what we are facing as an airline…. is that there is no normal any longer. He added that yesterday, the airline flew a handful of flights out of Heathrow. While in normal routine, they would fly more than 300.
The news arises as flight halts, and all around the world, lockdowns are implementing and threatening to airlines around the globe. International Air Transport Association says that rising financial crisis facing carriers could create revenues by fifty-five percent or some 314 billion dollars this year.
Last week, Virgin Australia collapsed the administration while on Monday, sister airline Virgin Atlantic confirmed by saying that it was hunting for keeping it alive for outside investors. Furthermore, Virgin Atlantic is managed by Richard Branson, who is also looking for a commercial loan from the government of the UK.
At the start of this month, British Airways furloughed 30,000 workers on eighty percent of their normal monthly wage till the end of May, and the United Kingdom government that is covering 3,100 dollars due to Coronavirus epidemic program.
At that point, Cruz told that the aviation industry had to face a worsened effect for the last few weeks, and calculations show that the conserved money was not sufficient.