Airlines to cut jobs, salaries and flights

LONDON: Airlines made unprecedented cuts to flights, costs and staffing yesterday, and stepped up calls for emergency government aid, as coronavirus lockdowns and new travel restrictions hit more major routes.

Already battered shares in British Airways parent IAG , easyJet and Air France-KLM plunged again as they scrapped most of their flights for the coming weeks, joining other major carriers that are all but halting operations in the face of the pandemic.

“It is clear that the coronavirus is by far the biggest crisis in the history of aviation,” Finnair chief executive officer Topi Manner said as the carrier announced a 90 per cent capacity reduction and its second profit warning in three weeks.

The outlook darkened further after Spain declared a state of emergency and the United States extended travel curbs to Britain and Ireland, while Australia and New Zealand began requiring all travellers to self-isolate.

In a joint statement, the world’s three main airline alliances, oneworld, SkyTeam and Star Alliance, called for government aid to alleviate the “unprecedented challenges” faced by the industry.

IAG, which also owns Spain’s Iberia and Vueling, said it would cut April-May capacity by at least 75 per cent and postpone CEO Willie Walsh’s retirement, keeping successor Luis Gallego at Iberia’s helm as the group navigates the crisis.

Air France-KLM said it would park its Airbus A380 and Boeing 747 fleets as it reduces operations by 90 per cent and discusses emergency aid with the French and Dutch governments.

The group will use government-funded partial layoffs to find €200 million in emergency cost cuts as it reins in capital expenditure by a further 350 million.

Air New Zealand Ltd plans job cuts after cutting long-haul capacity by 85 per cent, CEO Greg Foran warned.