Aer Lingus reports loss for 2008

Thursday, 12th March 2009

In the previous year, the airline made a profit of €124.8 million.

Aer Lingus warned that the "rapidly deteriorating" market in airline travel would likely result in increased losses for 2009. The airline has recently fought off Ryanair’s latest takeover bid.

In a statement, the Aer Lingus said: "In the current climate we believe that in 2009 Aer Lingus will experience a larger operating loss than in 2008 and that in these circumstances the group is unlikely to meet its previous guidance of a pre-tax profit in 2009."

It added: "Since the start of the year, the continued and accelerating flow of negative economic data from the Irish and international markets, together with the increasing numbers of people out of work, has weakened consumer demand."

Aer Lingus is reducing its workforce by 1,500 jobs and has said that further capacity reductions may be necessary, particularly on long-haul routes.

The airline’s CEO, Dermot Mannion, said: "2008 was a year of exceptionally challenging trading conditions for the aviation industry as a whole. For Aer Lingus, falling consumer demand in key markets, a weakening dollar and sterling, and increased competition across the network combined to put sustained and significant pressure on our business throughout the year."

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