Aer Lingus yearly loss widens by 18% to hit €130m

Aer Lingus yearly loss widens by 18% to hit €130m. (AFP)

Ireland-based Aer Lingus Group yesterday said that its full year loss widened by 18 per cent in 2009 to €130 million ($176m; Dh644m). The company blamed recession for this.

The company had posted a loss of €109.8m the previous year. The company's revenues decreased from €1.35bn to €1.2bn, a decrease by 11 per cent. The company also said its average fares were down nearly 18 per cent.

Meanwhile, its capacity has been reduced by four per cent compared to 2008, the company said. Aer Lingus gained from a 17 per cent drop in fuel costs.

Exceptional costs included €51.9m in payments to employees losing their jobs. Aer Lingus flight attendants voted on March 26 to accept a €97m cost-cutting plan. The company, however, said its first-quarter loss will narrow as demand for long-haul flights rises.

The carrier has had slightly lower losses in the first three months of 2010 compared with a year earlier, its Chief Financial Officer Andrew Macfarlane.

Implementation of the cost-reduction programme is vital, he said. 

 

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