Skift Take
IAG, one of Europe's largest airline groups, has an eye on the leisure travel recovery beginning in July if European governments cooperate. But with many restrictions still in place, the group is weighing taking further steps to restructure its operations, notably at Irish subsidiary Aer Lingus.
Corporate restructurings seem to be in the air in Europe with International Airlines Group placing Aer Lingus on notice amid what executives call Europe's most "stringent" travel restrictions in Ireland.
IAG is "considering the necessary steps we need to take" for Aer Lingus to "survive," said group CEO Luis Gallego during the first quarter earnings call on Friday. His implication was that further cost cuts — for example layoffs or fleet reductions — could be necessary at the Irish carrier if travel restrictions remain in place.
In the first quarter, Aer Lingus flew just 3 percent of the passenger traffic it carried during the same period in 2019. Passenger revenues plummeted a dramatic 97 percent to nearly $15 million (€12 million).
The revenue drop was the worst among IAG's four airlines, which also include British Airways, Iberia and Vueling. Gallego and other executives placed the blame squarely on Ireland's stiff travel restrictions that, unlike in other European countries, have not been accompanied by c
