Aer Lingus says will delay Airbus aircraft order
Aer Lingus Group Plc will delay taking delivery of Airbus SAS aircraft as it cuts long-haul services.
Deliveries of three A330s will start in the third quarter of 2013 and the first of its six A350s will arrive in 2015, the airline said in a statement today. The company didn’t say when the planes had been due to arrive.
Aer Lingus is looking to cut costs as it fights a slowdown in demand for travel. The company, which is also reducing the number of aircraft in its fleet by ending two leases early, said in June it will lower seat capacity on winter long-haul services by about 25pc.
“These agreements represent a successful outcome for Aer Lingus,” the company said in the statement, adding the new delivery plan was negotiated at “no additional cost.”
“Aer Lingus has an overhead it can no longer afford,” Joe Gill, analyst at Bloxham Stockbrokers in Dublin, wrote in a note today. “The changes also heighten the need to restructure costs across the business.”
The airline will reduce its long-haul fleet to eight from nine by the end of the year.
Aer Lingus shares rose 1pc to 47 cents at 11:33 a.m. in Dublin, giving the company a market value of €253.6m.