Major airlines facing difficult times

The aviation sector is going through difficult times which has led to profit cuts. Which airlines are affected?

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.

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