British Airways To Negotiate 12,000 Job Cuts

British Airways has begun discussions with unions on the airline ’s up to 12,000 layoffs.

The airline said that because travel demand is unlikely to meet demand in 2019, the proposed restructuring and layoff plan is necessary.

Through the government-provided job retention program, British Airways has disbanded 22,626 of its 42,000 employees.

British Airways Chief Executive Officer Alex Cruz said in a letter to employees: “The British government does not have a government bailout plan, and we cannot expect taxpayers to offset their pay indefinitely.

“Any money we borrow now is only short-term and cannot solve the long-term challenges we will face now.”

He added: “We are a powerful and well-managed enterprise that has faced and overcome many crises in our 100-year history.

“We must also overcome this crisis ourselves.”

The decision was announced when IAG, the parent company of British Airways, announced its first quarter financial results.

IAG said total revenue fell 13% to 4.6 billion euros, compared with 5.3 billion euros in the same period last year.

Excluding special projects, the operating result was a loss of 535 million euros, compared with a profit of 135 million euros in the same period last year.

In addition, IAG ’s pre-tax profit was affected by a special fee of 1.3 billion euros, which was caused by the hedging of its fuel and foreign currency hedging transactions for the rest of 2020.

Passenger traffic, expressed in available seat kilometers, fell 10.5% during the quarter.

Passenger traffic in terms of revenue passenger kilometers fell by 15.2% during the quarter, while seat load factor fell by 4.3 percentage points to 76.4%.

Compared with the same period last year, IAG reduced passenger traffic by 94% in April and May, operating only necessary travel and repatriation flights.

“Considering the substantial decline in passenger traffic and traffic, despite the government’s retention of work and wage support programs to reduce staff costs, the group expects operating losses in the second quarter to deteriorate significantly from the first quarter.” IAG Chief Financial Officer

“It is expected that it will take several years to restore passenger demand levels by 2019, so it is necessary to take restructuring measures throughout the group.”

The organization said that the more detailed results for the first quarter will be released as planned on May 7.


United Nations Secretary-General Len McCluskey called the move “a ruthless decision.”

He said the decision was completely inconsistent with the actions taken by European competitors in seeking a solution to the crisis.

McCluskey explained: “This announcement will undoubtedly be seen as a sting by the close British Airways family.

“We said to British Cruz boss Alex Cruz that this was a ruthless decision during the national crisis.

“With most British Airways workers on vacation, we had hoped that he would work with us and the government to honor the spirit of retaining the work plan.”

He added: “The governments of Europe, Spain, Germany and France are working with unions and airlines to better rebuild and keep people working while the industry recovers.

“We simply can’t understand why Alex Cruz didn’t do the same thing unless he sought an opportunity to see other airlines go bankrupt so that British Airways could profit.

“Reject the government’s support and then expect your employees to pay for this wrong judgment. This is irresponsible, dangerous, and destructive, completely contrary to the mood of the country in times of crisis.

“This industry must unite, otherwise more workers will suffer the same fate as the 12,000 British Airways workers.”