Aer Lingus and British Airways have reported that they will be cutting jobs and freezing pay to ease debt problems, as the International Air Transport Association predicts record losses.
The Irish airline have announced they will be cutting around 700 jobs and freezing pay for people earning over £32,000, to try and bring the company back into profit.
British Airways have also said that up to 1,700 jobs could be lost and that they will be changing working practices in a bid to prevent debt management issues developing.
Christoph Mueller, the chief executive of Aer Lingus, said the outlook for the airline remained ‘poor’ and he did not see any quick recovery.
He added: “Aer Lingus cannot continue with an operating cost base which is structurally uncompetitive when compared to that of its closest peers.”
Ivan Cooper, Chairman at debt management specialists Chiltern, said: “The fallout from these job losses is quite significant, and many families will be affected especially in the run up to Christmas when finances are already tight.
“With jobs scarcer to come by, many people may not find a new job quickly, so they will need to seek impartial debt advice to ensure that they can maintain repayments on current credit commitments.”
