British Airways Owner Trims Expenses With Furloughs, Job Cuts
British Airways Owner Trims Expenses With Furloughs, Job Cuts
(Bloomberg) --
IAG SA said state furlough programs and outright job cuts helped hold down operating costs in the third quarter, helping the owner of British Airways manage through a travel slump with no recovery signs on the horizon.
The airline group, which also includes Spain’s Iberia and Irish carrier Aer Lingus, reduced cash costs by 54% from previous plans, to 205 million euros a week, it said Friday in a statement. It said it wouldn’t provide profit guidance for the full year.
A resurgence in Covid-19 infections is now bearing down on slower winter season, causing airlines to pull back on capacity plans as they search for any way to minimize expenses.
IAG said last week it will only operate 30% of its usual schedule in the three months to Dec. 31. It has slashed about 10,000 jobs at British Airways and Aer Lingus along reducing supplier costs.
The company on Friday reported a third-quarter operating loss of 1.3 billion euros, with revenue plunging 83%. IAG said it remains well-capitalized with liquidity of 9.3 billion euros.
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