(Sharecast News) - IAG chief executive officer Willie Walsh will temporarily postpone his retirement as the company rides out the turbulence from the coronavirus epidemic.
The chief of the carrier's Spanish unit Iberia, Luis Gallego, would also continue in his role for the next few months and Javier Sanchez would stay on as boss at Vueling, IAG's low-budget arm.
Due to the "exceptional" circumstances buffeting the industry, especially in Spain, which had seen multiple governments place restrictions on travel to the country, the firm had decided that "management stability across the Group should be a priority".
Walsh said that bookings across IAG's global network had declined "substantially" over the preceding weeks and that demand was expected to remain "weak well into the summer".
Hence, the decision had been taken to significantly cut flying schedules and IAG had the flexibility to make additional cuts if needed.
IAG said that it would reduce its capacity in terms of available seat kilometres by 7.5% in the first quarter of 2020 when compared to a year ago, before slashing it by at least 75% for April and May.
Actions were also being taken to reduce operating costs and boost cash flow at each of the group's airlines, including grounding surplus jets, cutting non-essential non-cyber related IT spending, freezing discretionary spending, temporarily suspending employment contracts and reducing working hours.
"IAG is resilient with a strong balance sheet and substantial cash liquidity," Walsh added.
As at 12 March, IAG said that the group had cash, cash equivalents and interest bearing deposits worth €7.35bn.
That was on top of €1.9bn in undrawn general and committed aircraft backed financing facilities.
International Airlines (IAG)3 May 2024 13:37