Coronavirus: British Airways owner abandons flights after “stabilizing” reservations | Economic news

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The owner of British Airways (BA) has joined its competitors in announcing significant reductions in flight schedules, accusing a “leveling” in passenger demand.

International Airlines Group (IAG), which counts Aer Lingus and Iberia among its brands, also confirmed progress in BA’s union negotiations on changes in pay and conditions for cabin crew, with the airline cutting thousands of jobs for lower the costs.

He said the British airline had reached an agreement in principle with Unite, but revealed that up to 13,000 people were about to leave BA in total – 8,236 having already left “mainly as a result of a voluntary dismissal ”.

Sky News analysis shows that aviation, as a sector, is currently the most affected by the jobs crisis – with BA plans affecting the most people in a single company.

IAG a dit coronavirus travel restrictions and quarantine requirements had weighed on group bookings – dashed hopes of a steady recovery from the depths of the COVID-19[feminine[feminine crisis.

The company has previously said it hopes to operate 54% of its normal services between October and December.

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But he revealed on Thursday that the figure was now tilted to approach 40% following a “global cap on reservations” since July, when it restarted the majority of its services following a jump in end-of-block sales. .

IAG said demand for short-haul travel had “declined slightly” following the reintroduction of quarantine requirements by the UK and other European countries for travelers returning from specific countries.

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BA scrapped its 747 jumbo fleet at the height of the crisis as part of its efforts to contain costs

The company’s decision to cut flights reflects recent announcements by easyJet and Ryanair, which have seen similar declines in future booking volumes due to uncertainty.

The industry has called for air passenger rights to be curtailed and airport testing regimes to limit quarantine times to boost confidence in flights.

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IAG shares are down nearly 70% this year

IAG presented its progress report in an update to investors on its fundraising plans – first revealed in July – to strengthen its balance sheet during the current turbulence.

He said he aimed to raise € 2.7bn (£ 2.5bn) through the sale of new shares at a reduced rate.

IAG’s market value has reached almost 70% since the start of the year.

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