Aer Lingus owner says all of its airlines will need to shrink to survive

Newly retired IAG chief executive Willie Walsh told investors airlines will have to shrink their cost bases in order to compete in a post-Covid marketplace.

Aer Lingus owner IAG has said each of its airlines will have to shrink in size and cost base in order to compete in a “decimated” market brought on by the disruption caused by the spread of the Covid-19 pandemic.

IAG owns Aer Lingus, British Airways and Spanish carriers Iberia and Vueling.