International Airlines Group to cut 4,500 jobs

International Airlines Group today announced plans to axe 4,500 jobs as it attempts to stem losses at its Spanish airline Iberia.

The group, which owns British Airways, will cut Iberia’s capacity by 15% and downsize its fleet by 25 aircraft as it battles to revive an operation which made losses of €262m in the first nine months of this year.

Iberia’s troubles and the impact of Superstorm Sandy, which grounded flights into and out of the US east coast last month, mean IAG expects an operating loss of about €120m this year.

The group made an operating profit of €270m in its busy third quarter trading period, with BA achieving profits of €286m over the first nine months of this year.