International Airlines Group plans to cut capacity by at least 75 per cent in April and May as the company battles the coronavirus pandemic around the world.
The group – which operates British Airways, Iberia and Aer Lingus – said it was also taking drastic actions to reduce operating expenses and improve cash flow.
These include grounding surplus aircraft, reducing and deferring capital spending, cutting non-essential and non-cyber related IT spend and freezing recruitment.
At the same time, IAG is implementing voluntary leave options, temporarily suspending employment contracts and reducing working hours.
In light of the exceptional circumstances facing the aviation industry due to Covid-19, and in particular the developing situation in Spain, it has been decided that Luis Gallego will continue in his role as Iberia chief executive for the next few months to lead the response in Spain.
In the meantime, Willie Walsh, who had been due to this month, will continue to act as group chief executive.
Javier Sanchez will remain in place as Vueling chief executive.
Walsh said: “We have seen a substantial decline in bookings across our airlines and global network over the past few weeks and we expect demand to remain weak until well into the…