British Airways CEO Alex Cruz is stepping down as the airline grapples with a massive crisis sparked by the coronavirus pandemic.
Parent company IAG announced the leadership shakeup Monday amid a difficult period for the UK-based carrier, which has had to slash thousands of jobs and cut pay as COVID-19 brought air travel to a near-standstill.
Sean Doyle, chief executive of Irish airline Aer Lingus, will replace Cruz immediately as British Airways’ CEO. Cruz will stay on as the airline’s non-executive chairman during a transition period before Doyle also takes over that role, IAG said.
“We’re navigating the worst crisis faced in our industry and I’m confident these internal promotions will ensure IAG is well placed to emerge in a strong position,” IAG chief executive Luis Gallego said in a statement, noting that Cruz has led British Airways “through a particularly demanding period.”
Cruz was tasked with cutting costs at British Airways to help it compete with budget airlines when he took over as CEO in 2016. In recent months he has overseen plans to cut 13,000 jobs in response to the pandemic, which have made him a target of hostility from trade unions.
The carrier has also drawn fire from staff and politicians in recent months for a policy that left some workers facing pay reductions as large as 50 percent, according to the BBC.
The shakeup will bring Doyle back to British Airways after a brief stint at Aer Lingus, which went into the COVID-19 crisis as IAG’s top-performing airline. He was British Airways’ director of network, fleet and alliances before he moved to the Irish carrier in 2019.
British Airways isn’t the only airline facing tough times as the coronavirus continues to depress demand for air travel. US carriers United and American started furloughing more than 32,000 staffers earlier this month following the expiration of a federal bailout meant to keep industry workers employed.
IAG’s London-listed shares were trading up 0.2 percent at 103.70 British pence, or $1.34, as of 8:34 a.m. Eastern time Monday.
With Post Wires
