British Airways to cut 10,000 workers

British Airways is expecting to cut as many as 10,000 jobs due to the COVID-19 pandemic even as the airline reached deals or agreements in principle with its various unions.

The flagship U.K. carrier has seen 7,200 people leave as of last week, Chief Executive Officer Alex Cruz told lawmakers in London on Wednesday. The company remains in discussions with some labor groups, he said, and has rowed back on a plan to fire and rehire staff on new contracts.

British Airways, part of IAG SA, has previously come under fire from unions and lawmakers for its initial plan to cut as many as 12,000 workers. The pandemic has reversed decades of growth in the aviation industry, shutting down flights and triggering a slump that could see traffic diminished for years.

• American Airlines is cutting the number of flight attendants on many of its larger planes and longer trips starting in October, coinciding with upcoming furloughs and layoffs for more than 19,000 employees.

Fort Worth-based American Airlines has already told flight attendants that the job will have to change starting Oct. 1 when federal stimulus aid runs out and the carrier tries to find a path back to profitability despite

the COVID-19 pandemic.

The company is furloughing 8,100 flight attendants and others have been warned that changes could make life less comfortable for those that stay.

• Delta Air Lines Inc. raised $9 billion in the industry’s largest debt sale ever, tapping into investors’ rampant demand for yield while seeking to survive a slowdown that’s causing it to burn through $27 million a day.

The bonds, secured by Delta’s frequent-flier program, carry high-grade ratings, but some yield as much as 4.75 percent, according to people with knowledge of the matter.

The prospective payout was so alluring to investors that they placed three times as many orders as bonds and loans available for sale. That allowed Delta to boost the size of the deal from an original $6.5 billion — which the company said already would’ve been enough to rule out the need for additional federal aid.

At $9 billion, Delta’s transaction was the largest ever for a commercial carrier.