Aer Lingus expects ‘challenging’ 2010
Aer Lingus expects revenue to decline in 2010, which it said will be an "extremely challenging" year.
The first half will be “particularly weak” after severe weather led to lower-than-expected first-quarter bookings, the carrier said today in a Regulatory News Service statement ahead of an investor presentation in London.
Aer Lingus is in talks with workers about job cuts as part of a €97m savings plan, with cost cuts this year likely to amount to €44m, it said today. While fuel expenses will be lower, airport charges will increase by an estimated €20m.
“While it remains too early in the year to provide meaningful guidance for the group’s 2010 full-year financial performance, Aer Lingus anticipates that market conditions will remain extremely challenging in 2010,” the company said.
Liquidity is “more than sufficient” to meet short- and medium-term capital spending and lease-repayment requirements, the airline said.
Gross cash and deposits stood at €825m as of December 31, recovering from about €400m earlier in 2009.
Aer Lingus said this month it will report an operating profit for the second half of last year because of higher fares and seat-capacity cutbacks.