'Crisis in the Aviation Industry: British Airways Plans to Cut 12,000 Jobs'

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] British Airways (BA) is planning to cut 12,000 jobs due to the impact of the novel coronavirus (COVID-19).

On the 28th (local time), according to BBC and others, IAG, the holding company of British Airways, stated in a press release that it will "operate restructuring and layoff programs" until demand in the aviation industry returns to last year's levels.

British Airways employs about 42,000 people and has already agreed to pilot wage cuts. IAG said, "While it depends on the results of consultations, most British Airways employees will be affected," adding, "This could lead to up to 12,000 layoffs."

The reason IAG is undertaking large-scale restructuring is that it recorded an operating loss of approximately 535 million euros in the first quarter alone. Most of this is related to British Airways. IAG said it may take several years for air travel demand to recover to pre-COVID-19 levels and expects second-quarter results to worsen further.

In addition to British Airways, IAG owns Ireland's Aer Lingus, Spain's Iberia Airlines, and Vueling Airlines, and is considered one of the financially strongest companies in the aviation industry.

Meanwhile, Icelandair also announced on the same day that it plans to lay off 2,000 employees due to the impact of COVID-19. As of 2018, Icelandair had 4,600 full-time employees. Icelandair stated that it will operate at a minimal level for the time being and that most of the remaining employees will perform part-time roles.

This content was produced with the assistance of AI translation services.