The global aviation industry continues to face turbulent times in the face of the covid-19 pandemic. With the onset of the winter season, the picture ahead doesn’t look any better from a financial point of view.
British Airways-owner IAG and Air France-KLM released results Friday that showed the scale of the challenge facing airlines during the global health crisis.
With bookings hammered by global lockdowns and travel restrictions, British Airways-owner IAG said it would drive down its cost base.
New CEO Luis Gallego is sticking to a policy of cutting employee and supplier costs to survive low travel numbers. IAG said it had cut cash operating costs by 54% from original plans to 205 million euros per week – or nearly $240 million – during July-September.
Like IAG, Air France-KLM plans to reduce costs. As part of that it will cut 9,000 full-time positions this year – with 4,500 more to go by 2022.
It was no better in Asia for Japan Airlines, either. Japan’s second-largest carrier forecast a record operating loss for the year through to March of between $3.2 to $3.6 billion.
