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27/08/2009
Aer Lingus Hits Turbulent Times
The Irish state-sponsored airline Aer Lingus has reported large losses due to the downturn in global travel.
The part-government owned carrier - which abandonded important 'slots' from Shannon to London in favour of relocation to Belfast International Airport two years ago - said it had experienced a big increase in losses for the first half of the year.
Despite news that Aer Lingus recently clinched an NI Government contract worth an estimated £500,000 per year to fly civil servants between Belfast and London, it has admitted today that it was forced to cut fares during the continuing downturn and the company's first half results reveal an operating loss of €93 million in the six months to the end of June, during what it described as "challenging market conditions".
A spokesman for the carrier said: "Trading conditions continue to be very challenging across the airline industry.
"There has been a structural change in fares and in demand for our long haul business class product in particular.
"Aer Lingus expects that the continuation of the current market trends in Ireland and its other key markets will lead to further sustained and significant fare pressure."
The collapse in air fare prices have left a major mark on Aer Lingus bottom line, as the document also reports an actual rise in the number of flyers, despite its huge losses.
Air fares have fallen by 17% on average, while increasing fuel costs have compounded the companies financial woes.
The spokesman added that Aer Lingus expected the current market trends in Ireland would lead to further sustained and significant fare pressure.
"This dynamic and very challenging environment contributes to a highly uncertain outlook," he said.
Meanwhile, Aer Lingus' indigenous competitor Ryanair is keeping up the pressure with the announcement of a €5 seat sale.
The €5 fares are available on over 500 of Ryanair's European routes but must be booked on www.ryanair.com before midnight tonight.
However, customers will need to avoid discretionary fees by paying with Visa Electron, travel with carry-on luggage only and forego priority boarding in order to fly for the advertised €5 fare.
See: Aer Lingus Win NI Civil Service Contract
See: Aer Lingus' Belfast Flights Take Off
(BMcC/GK)
The part-government owned carrier - which abandonded important 'slots' from Shannon to London in favour of relocation to Belfast International Airport two years ago - said it had experienced a big increase in losses for the first half of the year.
Despite news that Aer Lingus recently clinched an NI Government contract worth an estimated £500,000 per year to fly civil servants between Belfast and London, it has admitted today that it was forced to cut fares during the continuing downturn and the company's first half results reveal an operating loss of €93 million in the six months to the end of June, during what it described as "challenging market conditions".
A spokesman for the carrier said: "Trading conditions continue to be very challenging across the airline industry.
"There has been a structural change in fares and in demand for our long haul business class product in particular.
"Aer Lingus expects that the continuation of the current market trends in Ireland and its other key markets will lead to further sustained and significant fare pressure."
The collapse in air fare prices have left a major mark on Aer Lingus bottom line, as the document also reports an actual rise in the number of flyers, despite its huge losses.
Air fares have fallen by 17% on average, while increasing fuel costs have compounded the companies financial woes.
The spokesman added that Aer Lingus expected the current market trends in Ireland would lead to further sustained and significant fare pressure.
"This dynamic and very challenging environment contributes to a highly uncertain outlook," he said.
Meanwhile, Aer Lingus' indigenous competitor Ryanair is keeping up the pressure with the announcement of a €5 seat sale.
The €5 fares are available on over 500 of Ryanair's European routes but must be booked on www.ryanair.com before midnight tonight.
However, customers will need to avoid discretionary fees by paying with Visa Electron, travel with carry-on luggage only and forego priority boarding in order to fly for the advertised €5 fare.
See: Aer Lingus Win NI Civil Service Contract
See: Aer Lingus' Belfast Flights Take Off
(BMcC/GK)
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Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
