Aer Lingus warns profits could be down by up to 20pc due to strike
Published 12/06/2014 | 07:47
AER Lingus has issued a trading statement today warning that its operating profit could be down as much as 20pc in 2014 compared with last year because of the recent strike and threats of further disputes.
It also welcomed indications from trade union Impact, following Labour Court intervention, that it will defer the further two days of strike action that had been called for June 16 and 18 pending a recommendation by the court.
"However, the threat of this strike has caused significant damage to Aer Lingus' trading and forward bookings for several months into the future," the airline, which made operating profits of about €60m last year, said today.
"In this context, and assuming that no further strikes are threatened, Aer Lingus now expects that its 2014 operating profits (before net exceptional items) will be 10pc to 20pc lower than last year.
"The outcome will depend in part on the speed with which we can win back customer confidence," it added.
Cabin crew at Aer Lingus are demanding similar terms and conditions to pilots and a strike took place on the June bank holiday weekend.
Aer Lingus added in the trading statement that it had experienced positive trading in April with short haul, long haul and retail all performing strongly in the month.
"This performance enabled Aer Lingus to maintain its guidance that 2014 operating profits would be in line with the prior year, despite the adverse effect of the strike called by the Impact trade union for the June bank holiday weekend."