IndiGo to cut 10pc of staff as COVID-19 crushes travel

- A Monitor Desk Report 23 Jul, 2020 | 553 Views|-+
Dhaka: Indian airline IndiGo announced that it will be shedding 10 per cent of its staff as it grapples with a slump in revenues while the coronavirus pandemic crushes air travel demand.

Last month, IndiGo said it would cut up to USD 533 million in costs.

Airlines across the world have been hit hard by coronavirus-related travel restrictions.

In a letter to investors, Ronojoy Dutta, Chief Executive, IndiGo, said, "It is impossible for our company to fly through this economic storm without making some sacrifices, in order to sustain our business operations."

The airline, which has been grounded for several months as India imposed a strict lockdown, employs around 24,000 people which means some 2,400 jobs are on the line.

According to the company's own figures it is India's biggest passenger airline with a market share of 48.9 per cent as of March this year and had been profitable for 10 years in a row.

The latest announcement on airline job cuts comes as carriers around the world are expected to see their worst year on record.

Last month, a global aviation industry body warned that the slump in travel caused by the coronavirus will drive airline losses of more than USD 84 billion this year.

The International Air Transport Association (IATA), which has 290 member airlines, said revenues would drop to USD 419 billion, down 50 per cent compared to last year.

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