British Airways to cut up to 12,000 jobs due to airline collapse

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BA planes seen behind barbed wire fence

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Airlines from around the world immobilize planes as passenger numbers plummet


British Airways is expected to cut up to 12,000 jobs from its 42,000 employees due to a business collapse due to the coronavirus pandemic.

The airline’s parent company, IAG, has said it will impose a “restructuring and layoff program” until demand for air travel returns to 2019 levels.

The Balpa pilots’ union said it was “devastated” by the news and promised to fight “every” job loss.

IAG also owns the Spanish airline Iberia and the Irish company Aer Lingus.

In a statement, IAG said: “The proposals remain open to consultation, but are likely to affect most British Airways employees and could result in the dismissal of 12,000 of them. “

The company said it would take several years for air travel to return to pre-virus levels, a warning that has been repeated by airlines worldwide.

Along with IAG’s statement, BA CEO Alex Cruz wrote in a letter to staff: “Over the past few weeks, the outlook for the aviation industry has deteriorated further and we must act now. We are a solid, well-managed company that has faced and overcome many crises in our 100-year history.

“We also have to overcome this crisis ourselves. There is no government bailout for BA and we cannot expect the taxpayer to compensate wages indefinitely … We will see some airlines shut down. “

About 4,500 pilots and 16,000 cabin crew members work for BA, which has already put almost 23,000 employees on leave.

Global impact

Balpa secretary general Brian Strutton said, “It came as a thunderbolt from an airline that said it was rich enough to weather the Covid storm and refused any government support.

“Balpa does not accept that arguments have been put forward to justify these job losses and we will fight to save each one. “

Also on Tuesday, IAG revealed the impact of the virus epidemic on the group’s revenues. In the first three months of 2020, sales fell 13% to 4.6 billion euros (£ 4 billion). The worst is yet to come, Stephen Gunning, chief financial officer, IAG.

Airlines around the world have warned that they must fight for their survival.

In the UK, EasyJet has laid off 4,000 UK-based crew members for two months. And Sir Richard Branson called on the government to help bail out his airline Virgin Atlantic with an estimated loan of £ 500 million.

Elsewhere, Qantas put 20,000 employees on leave, while Air Canada did the same for approximately 15,200 employees. Norwegian Air has said it may run out of cash by mid-May. At American Airlines, approximately 4,800 pilots have agreed to take short leave without pay and more than 700 are taking early retirement.

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