BA parent IAG burning through £178m a week, says Cruz

British Airways parent company IAG was burning through £178m a week as it wrestled with the coronavirus crisis, according to the airline's chief executive.

In a letter to staff, Alex Cruz also attacked unions opposed to BA's plans to axe more than 12,000 staff and warned the company did not have "an absolute right to exist".

"Despite our best efforts the amount of flying we will be doing this summer will be limited and fiercely competed."

Cruz joined the chorus of criticism over the government's plan to quarantine international visitors for 14 days in an attempt to prevent a second surge of the pandemic, calling it a “"another blow to our industry".

British Airways came under heavy attack from lawmakers in parliament on Wednesday, who accused it of taking advantage of a government scheme to protect jobs while at the same time announcing plans to cut its workforce by 28%.

Planes were grounded in March due to coronavirus restrictions, forcing many airlines to cut thousands of staff as they struggle without revenues. Airlines serving Britain now face an additional threat from a 14-day quarantine rule.

BA also wants to change terms and conditions for its remaining workers to give it more flexibility by, for example, making all crew fly both short and long-haul.

IAG, which also owns Aer Lingus, Iberia and Vueling, had liquidity of €10bn at the end of April.

"BA does not have an absolute right to exist. There are major competitors poised and ready to take our business," Cruz said in the letter.