Last checked at 2 Apr 2020 17:38
IAG further reduces capacity and accesses job retention and wage support schemes
International Airlines Group (IAG) continues to take every action to reduce operating expenses and improve cash flow.
On 16 March 2020, IAG announced that it would reduce capacity, expressed in terms of available seat kilometres, by at least 75 per cent in April and May compared to the same period in 2019. In recent weeks, IAG's airlines have been helping to repatriate customers throughout the world and to conduct cargo flights delivering vital medical equipment and supplies, food and other products to combat COVID-19 and keep global supply chains moving.
Following a review, IAG has decided to reduce capacity further to an approximately 90 per cent reduction in April and May compared to last year.
British Airways accesses UK Job Retention Scheme
As a result of the significant decline in flying, British Airways is making use of the UK's COVID-19 Job Retention Scheme to help UK-based employees placed on furlough. It has today reached agreement with trade unions, GMB and Unite, to apply this scheme to more than 30,000 cabin crew and ground-based employees in April and May. Under this scheme, furloughed employees will receive 80 per cent of their base pay and of certain allowances. This agreement is subject to union ratification.
British Airways has also reached agreement with its 4,000 pilots to take four weeks of unpaid leave in April and May.
IAG's other airlines have received support from similar job retention and wage support schemes for more than 17,000 employees in Spain and are seeking similar support in Ireland.
Stephen Gunning
Chief Financial Officer
2 April 2020
LEI: 959800TZHQRUSH1ESL13
This announcement contains inside information and is disclosed in accordance with the Company's obligations under the Market Abuse Regulation (EU) No 596/2014.