Additional layoffs ahead as Aer Lingus plunges to loss

Aer Lingus Group reported a loss before taxes and exceptional items of €66.2 million ($90.4 million) in 2009, reversed from an €18.8 million profit in 2008, and a quadrupling of its operating loss to €81 million from €20 million.

The Irish flag carrier released the figures in a brief trading statement that came a day after it said it was delaying publication of detailed full-year results because of its inability to list an accurate charge relating to cost reduction agreements it is attempting to reach with unions (ATWOnline, March 9).

Revenue fell 11% to €1.21 billion, with fare revenue decreasing 13.7% to €992.7 million. Average fare declined by 16.8% from 2008, comprising a 12% drop of the average short-haul fare to €77.10 and a 15.9% slide in average long-haul fare to €255.70. Ancillary revenue increased 16.2% to €173.9 million. Operating costs were cut 6.4% to €1.29 billion as fuel costs fell 17.3%.

In order to complete its planned €97 million cost savings, full approval of which is being held up by cabin crew represented by Impact, the EI board yesterday reportedly approved compulsory flight attendant redundancies. CEO Christoph Mueller informed the government of 230 layoffs, according to widespread press reports.

EI's 2009 passenger numbers rose 3.8% to 10.4 million, encompassing a 14.8% long-haul reduction to 1.1 million and a 6.5% short-haul increase to 9.3 million. Traffic measured in RPKs was down 2.8% to 15.82 billion on a 5.1% capacity reduction to 21.23 billion ASKs. Load factor gained 1.7 points to 74.5%.