IAG: considering up to 12,000 job cuts
(CercleFinance.com) - IAG on Wednesday warned that a recovery to the level of passenger demand seen in 2019 is expected to take "several years," requiring "wide restructuring measures".
The airline group added that a proposed restructuring program may result in the redundancy of up to 12,000 of its employees.
While not providing profit guidance for 2020, the owner of British Airways and Iberia said that it expects its operating loss in the second quarter to be "significantly worse" than in the first quarter, given the collapse in passenger traffic.
IAG posted a first-quarter operating loss of 535 million euros, before exceptional items, compared to a profit of 135 million euros last year.
Its revenue declined by just 13% to 4.6 billion euros, from 5.3 billion euros a year ago.
Listed on the London Stock Exchange, the IAG shares dropped by over 2.7% after these announcements were made.
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