* BA to consult unions on up to 12,000 jobs
* Airline books 1.3 billion euro charge for overhedging
* IAG swings to Q1 operating loss
* Airline industry worst hit by pandemic
(Adding details)
LONDON, April 28 (Reuters) - British Airways plans to cut as
many as 12,000 jobs in response to the coronavirus crisis that
means that passenger numbers will take years to recover, its
owner International Consolidated Airlines Group said on
Tuesday.
IAG, which also owns Iberia, Aer Lingus and Vueling,
reported first-quarter operating losses before exceptional items
of 535 million euros ($580 million), compared with a profit of
135 million a year ago. Revenue dropped 13% to 4.6 billion
euros.
IAG warned it expects results to get worse in a statement
also setting out plans for a sweeping restructuring at BA.
Pre-tax profits were hit by an exceptional charge of 1.3
billion euros due to overhedging of its fuel and foreign
currency needs for the rest of 2020, it said.
Echoing comments from rivals such as Lufthansa ,
the airline said it will take several years for passenger demand
to return to 2019 levels.
Operating losses in the second quarter will be significantly
worse than in the first three months of the year given the
decline in passenger capacity and traffic despite some relief
from government job retention and wage support schemes, it said.
It didn't give 2020 profit guidance.
BA has 45,000 employees, including 16,500 cabin crew and
3,900 pilots, according to its website.
"British Airways is formally notifying its trade unions
about a proposed restructuring and redundancy programme," the
statement added.
"The proposals remain subject to consultation but it is
likely that they will affect most of British Airways' employees
and may result in the redundancy of up to 12,000 of them."
The measures come after IAG boss, Willie Walsh, a dealmaker
who made his name standing up to unions and cutting costs, last
month put off plans to retire to deal with the industry's worst
crisis.
Highlighting the speed of the damage as governments imposed
lockdowns to contain the pandemic, IAG said all the decline in
operating profit in the first quarter came in March.
($1 = 0.9228 euros)
(Reporting by Josephine Mason
Editing by Keith Weir)