British Airways to resume half of flights from July after 94% drop in passengers and slashing 12,000 staff

TROUBLED British Airways could run flights at 50 per cent capacity for the next three years in a bid to save claw back costs.

The plans could come into effect from July – weeks after the airline was forced to get rid of 12,000 workers as it struggles with the coronavirus crisis.

BA and Aer Lingus owners International Consolidated Airlines Group (IAG) said they are burning through cash and may not resume full capacity until 2023.

Willie Walsh, IAG chief executive, said: “We are planning for a meaningful return to service in July 2020 at the earliest, depending on the easing of lockdowns and travel restrictions around the world.

“We will adapt our operating procedures to ensure our customers and our people are properly protected in this new environment.

“However, we do not expect passenger demand to recover to the level of 2019 before 2023 at the earliest.”

British Airways has been running a limited service during the pandemic, primarily for bringing stranded tourists home.

The airline stopped all flights to and from London Gatwick, and reduced their routes from London Heathrow.

Others UK airlines are also struggling and facing huge losses –  Sir Richard Branson has warned that Virgin Atlantic will collapse unless it receives Government support, with more than 3,000 jobs set to go.

Virgin Australia has already gone into administration.

Yet flights are beginning to resume from the UK despite current advice warning against non-essential travel.

Wizz Air has resumed a number of flights from London Luton to Europe, ahead of the summer season.

Owain Jones, managing director said: “Although travel is currently restricted by government regulations, we are planning for the easing of restrictions as the situation improves and our customers are able to start travelling again.”

It follows the announcement from Prime Minister Boris Johnson that the lockdown could ease by next week.

Even if flights are to resume, however, this doesn’t means a holiday abroad is on the cards just yet.

EU countries are likely to leave the UK off the list when it comes to welcoming tourists back due to hitting the highest coronavirus death rate in Europe.

The UK has reported more than 30,000 deaths caused by the virus.

With Italy, Spain and Greece all reducing their current restrictions, the softer approach in the EU is primarily for domestic tourism at first, with restricted openings for land borders.

Airlines UK, which has members including British Airways, easyJet and Ryanair, has begged the government to let airlines keep passenger cash and to offer vouchers instead to protect the travel industry.

The letter sent to the government, seen by Sky News, asked: “Carriers should also be permitted to issue vouchers instead of refunds and, should refunds be required, carriers should be permitted to defer payment until the crisis period is over and as defined by air traffic volumes, rather than time period.”

The letter added: “We believe a number of such measures are necessary to enable aviation both to deal with the ongoing crisis in the short-term but also to support and accelerate a strong UK recovery later in the year.”

Airlines UK chief executive Tim Alderslade told Parliament’s Transport Select Committee yesterday: “Airlines have to restructure or go out of business.”