IAG-owned British Airways 'fighting for survival', says under-fire boss

British Airways CEO Alex Cruz has said the airline is fighting for survival due to the impact of Covid-19 on air travel

The boss of IAG-owned British Airways has said the airline is fighting for its survival and has scratched any hopes of a quick return to normality for the wider air travel industry.

IAG also owns Aer Lingus as well as Spanish carriers Iberia and Vueling.

British Airways is looking to cut around 13,000 jobs – or 30% of its workforce – in a bid to cut costs and survive the industry decimation caused by the Covid-19 pandemic.

The airline’s chief executive Alex Cruz told a UK parliament business committee that BA is doing everything possible to survive the winter season. However, he said a Covid-induced fear of flying has destroyed hope of any rapid return to normality for the industry, ahead of the traditionally weaker winter months.

“We’re still fighting for our own survival. We are taking every measure possible to make sure we can actually make it through this winter,” Mr Cruz said.

Mr Cruz urged the UK government to introduce an airport Covid-19 testing policy to allow for a shortening of the country’s 14-day quarantine rules and boost travel demand. BA is currently running at 25%-30% of its normal flight schedule.

Upon formally stepping down as IAG boss last week, Willie Walsh said each of the group’s airlines will have to shrink in size and cost base in order to compete within the new market conditions brought on by the Covid crisis.

Meanwhile, German airline Lufthansa is expected to cut its fleet by 130 planes in response to the Covid crisis. 

Airline group the International Air Transport Association - or IATA - believes it will take five years to return to pre-Covid levels of passenger demand. Davy has said it expects a smaller and more concentrated airline industry after the crisis.

“Only a few airlines will avoid long-term equity impairment. Indeed, only Southwest, Ryanair, Wizz and EasyJet are rated investment grade,” it said.