Aer Lingus reports loss in revenue

The Irish carrier has released the latest figures that show they are down by 10 per cent compared to the same second quarter last year. Passenger numbers were however up seven per cent to around 3.1 million but the cost of short and long haul flights has actually dropped by as much as 17 per cent compared to last year’s figures. This has prompted the airline to try and save money and an emergency plan last month said they are planning on laying off up to 800 workers. They would also consider a pay cut in an effort to save up to €97 million per year by the end of 2011.

Christoph Mueller, the new chairman at the Irish airline is giving a 50 per cent chance of the carrier surviving over the next two years. Third quarter figures were not released by Aer Lingus and this year they will finish payments on two new planes and high costs of restructuring which will leave them with around €400 million net cash to play with. A recent statement by the airline’s public relations office said that they are still finding it hard in the current market and were actively looking for ways to reduce costs.

The airline which is part owned by rivals Ryanair, has struggled in the current climate as have many. British Airways reported heavy losses last year and this year is not shaping up to be any better for them. Other airlines have not been so fortunate and had to close up its doors, which in some cases left their passengers stranded in foreign countries.