IAG: plans to slash capacity due to COVID-19 crisis
(CercleFinance.com) - Airline group IAG said on Monday that it is implementing further measures in response to the challenging market environment due to the COVID-19 pandemic.
Capacity - in terms of available seat kilometres - is now expected to be cut by around 7.5% in the first quarter compared to last year.
For April and May, the owner of British Airways plans to slash capacity by at least 75% compared to the same period in 2019.
IAG said it is also taking actions to reduce operating costs, including grounding surplus aircraft, deferring capex, cutting non-essential and non-cyber related IT spend and freezing recruitment. G
Given the uncertainty on the potential impact and duration of COVID-19, IAG said it is still not possible to give accurate profit guidance for full-year 2020.
IAG currently has cash, cash equivalent and interest-bearing deposits of 7.35 billion euros.
The London-listes share was down 23% after these comments.
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