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(Adds easyJet comment, background)
LONDON, Jan 5 (Reuters) - UK-based airlines British Airways
and easyJet said they were reviewing their plans in
response to new national COVID lockdowns, with reductions to
already low levels of flying almost certain.
Restrictions on travel due to the pandemic, and particularly
a halt by some countries to passenger traffic from Britain due
to an outbreak of a new variant of the coronavirus, means that
there are only a fraction of flights currently operating.
But the new lockdown in England stops most people from
travelling abroad, making more cuts likely, and putting airline
finances under renewed pressure as carriers had hoped for a
recovery in travel by the spring.
Goodbody analysts said the lockdown would wipe out income
from the school half-term holiday in February, usually a strong
travel period, and risked impacting bookings for Easter and
summer.
To survive this long, airlines have already had to cut
thousands of staff and raise new debt and equity. Last year,
British Airways said it needed to axe 13,000 staff, while
easyJet went ahead with 4,500 job cuts.
In response to the new lockdown, easyJet, which in December
had been flying about 20% of its 2019 capacity, once again
called for more government help for aviation.
"Given the ongoing impact of the pandemic on travel, we
continue to call for sector specific support such as has been
provided to hospitality," the airline said in its statement.
Travel industry bodies Airlines UK and the Airport Operators
Association have previously called on Britain to waive the air
passenger duty tax amongst other measures.
Before the pandemic, Britain had a thriving aviation sector.
Air transport and related supply chain activity plus tourist
arrivals supported 1.6 million jobs and accounted for 4.5% of UK
GDP according to an IATA study.
British Airways, owned by IAG, said on Tuesday that
its focus was on keeping some air links open to transport vital
goods.
Shares in easyJet traded down 1%, while IAG was up 1% at
1100 GMT.
(Reporting by Sarah Young, editing by Estelle Shirbon and Kate
Holton)
