Aer Lingus slashes losses
Published 24/08/2010 | 10:12
Aer Lingus dramatically reduced its losses in the first half of the year, company accounts revealed today.
The airline, which is in the middle of a difficult cost-cutting programme, suffered €19m losses for the six months to the end of June.
Bosses are predicting it will break even by the end of the year.
Chief executive Christoph Mueller said the improvements were significant despite difficulties caused by the Icelandic volcanic ash crisis and sluggish markets.
"Despite the group's strong commercial performance, Aer Lingus has not been complacent in addressing its cost position," he said.
"The group remains committed to implementing all aspects of the Greenfield Cost Reduction Programme in order to position Aer Lingus for a successful future."
Mr Mueller added: "For the 2010 full year, we expect to report an operating performance (before exceptional items) of no worse than break-even.
"This would represent a good performance in difficult market conditions but is predicated on the delivery of committed staff productivity savings and no further significant disruptions to operations from industrial action or airspace closures."
Aer Lingus carried 4.4 million passengers in the first half of the year, half a million fewer than the same time last year, but managed to reduce losses by 80pc from €93m in January to June 2009 to €19m this year.
Aer Lingus is continuing efforts to avoid damage to operations through a planned work-to-rule by members of the Impact trade union over the cost-cutting exercise.