IAG's actions to address COVID-19's impact

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[{"type":"text","content":"\n \n \n RNS Number : 2357G\n International Cons Airlines Group\n 16 March 2020\n  \n \n \n \n IAG's actions to address COVID-19's financial impact\n \n \n The rapid spread of COVID-19, and associated government travel restrictions and advisories are having a significant and increasingly negative impact on the demand for global air traffic on almost all routes operated by IAG's airlines.\n \n \n To date IAG has suspended flights to China, reduced capacity on Asian routes, cancelled all flights to, from and within Italy and made various changes to our network. \n \n \n The US Presidential announcement to restrict entry of foreign nationals who have been in countries in the Schengen Area, the UK and Ireland has added to the uncertainty on North Atlantic routes. In addition, many other countries have banned or are restricting inward travel including Argentina, Chile, India and Peru. Spain has also been the subject of travel advisories, for example by the UK Foreign and Commonwealth Office (FCO).\n \n \n IAG is implementing further initiatives in response to this challenging market environment. Capacity, in terms of available seat kilometres, in the first quarter of 2020 is now expected to be reduced by around 7.5 per cent compared to last year. For April and May, the Group plans to reduce capacity by at least 75 per cent compared to the same period in 2019. \n \n \n IAG is also taking actions to reduce operating expenses and improve cash flow. These include grounding surplus aircraft, reducing and deferring capital spending, cutting non-essential and non-cyber related IT spend, freezing recruitment and discretionary spending, implementing voluntary leave options, temporarily suspending employment contracts and reducing working hours. \n \n \n Given the continued uncertainty on the potential impact and duration of COVID-19, \n it is still not possible\n to give accurate profit guidance for the full year 2020.\n \n \n The Group has strong liquidity with cash, cash equivalents and interest-bearing deposits of €7.35 billion as at 12 March. In addition, undrawn general and committed aircraft backed financing facilities amount to €1.9 billion, resulting in total liquidity of €9.3 billion.\n \n \n Willie Walsh, IAG's chief executive, said: \"We have seen a substantial decline in bookings across our airlines a...

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