IAG is withdrawing its proposal to pay a €0.17-per-share final dividend to investors, following the coronavirus shutdown.

The group will instead propose, at its annual shareholders’ meeting, that all of its 2019 profit – save that already paid as an interim dividend – be added to voluntary reserves.

IAG‘s board is also delaying the shareholders’ meeting from June until the end of September.

The move comes after trade union GMB indicated that IAG-owned British Airways was planning to furlough over 30,000 employees under the UK government’s job-retention scheme.

BA would not be drawn on the details of the agreement, however, saying only that “talks continue”.

IAG is cutting capacity by 75% in April and May, and BA has suspended flights at both London Gatwick and London City airports.