IAG said coronavirus was having a “devastating impact” on global air travel, adding that it expects its second quarter to be “significantly worse”.
The firm tapped the Government’s Coronavirus Corporate Finance Facility for £300m in April to boost liquidity, taking its state-backed funding to about £1.2bn including Spanish support.
Passenger numbers have fallen by 94pc since late March with most aircraft grounded. The group has retained some planes for operating limited passenger, repatriation and cargo flights.
Even with a “meaningful return to service” in July, overall passenger capacity would fall by about 50pc for the year, the group said.
However, it warned that this plan was “highly uncertain and subject to the easing of lockdowns and travel restrictions”.
A string of countries have banned international flights altogether or imposed quarantines on visitors that make holiday and business travel almost impossible.
The Government is considering a 14-day quarantine for all passengers arriving from abroad.
Airlines around the world are struggling to survive the crisis, or relying on government bailouts to weather the storm.
On Monday, the European Commission approved the French government’s €7bn bailout of Air France-KLM, while Lufthansa expects to finalise terms of a bailout from the German government in the coming days.
Bailouts have angered someairline bosses including Ryanair’s Michael O’Leary and Mr Walsh, who have been staunch opponents of state aid for years.