Aer Lingus back in the black in Q2

Thursday, 26th August 2010

Irish carrier Aer Lingus swung to a profit in the second quarter of the year, following cost cutting that succeeded in offsetting the hit to revenues from the volcanic ash cloud. The airline promised to defend its independent status by further cutting costs into next year.

Aer Lingus shuttered unprofitable routes to the USA, cut back on staffing and shrunk fuel costs in a bid to maintain the health of its business. The airline is struggling to emerge from under the shadow of Ryanair, which at one point bid to acquire Ireland’s oldest airline. Aer Lingus admits it cannot compete outright on price against Ryanair, which runs a much larger and leaner operation.

Aer Lingus posted full-year losses in both 2008 and 2009. On Tuesday, the airline reiterated its expectation to break even on an operating basis in 2010 before any exception items. It also said that this result would be contingent on staff not striking as a result of cost cuts.

Aer Lingus posted a pre-tax profit of 15.4 million euros for the second quarter. This compares to a loss of 13.8 million euros for the same quarter in 2009. The airline is aiming to cut costs by 97 million euros within 2011.

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