The Aer Lingus owner has said it expects a “meaningful return” to service in July.

In its latest quarterly results announcement, the International Airlines Group said it is planning for a 50% drop in overall capacity this year.

It warned that its plans are “highly uncertain and subject to the easing of lockdowns and travel restrictions.”

Meanwhile, it has confirmed that “group-wide restructuring” will be needed to get the company through the COVID-19 crisis.

Aer Lingus has already announced plans to cut up to 900 jobs as a result of the outbreak, while British Airways is cutting 12,000 – Nearly a third of its workforce.

COVID-19

Capacity across IAG’s airlines has dropped 94% since March, with most planes grounded and those that are flying carrying cargo or limited passenger numbers.

It said it expects the second quarter of the year to be “significantly worse” than the first.

Chief Executive Willie Walsh said the group saw a loss of €535 in the first three months of the year – compared to a €135m profit in the same period last year.

“We are planning for a meaningful return to service in July 2020 at the earliest, depending on the easing of lockdowns and travel restrictions around the world,” he said.

“We will adapt our operating procedures to ensure our customers and our people are properly protected in this new environment.

2015 file photo of Willie Walsh, chief executive of International Airlines Group | Image: Niall Carson/PA Wire/PA Images

“We are working with the various regulatory bodies and are confident that changes in regulations will enable a safe and organised return to service. The industry will adapt to new requirements in the same way that it has adapted to developments in security requirements in the past.”

“However, we do not expect passenger demand to recover to the level of 2019 before 2023 at the earliest.

“This means group-wide restructuring is essential in order to get through the crisis and preserve an adequate level of liquidity. We intend to come out of the crisis as a stronger Group.”

An Iberia aircraft on approach to Duesseldorf airport, 18-03-2020. Image: Malte Ossowski/SVEN SIMON/DPA/PA Images

The group, which also owns Iberia and Vueling in Spain has said it will now look to delay delivery of 68 planes it has purchased.

It is also reconsidering plans to buy Spain’s Air Europa for €1.1bn.

Meanwhile, the group said Mr Walsh, who delayed his retirement until September due to the outbreak will be replaced by Iberia CEO Luis Gallego.

Mr Gallego will take over on September 24th.