Aer Lingus operating losses quadruple

Dublin: Operating losses at Aer Lingus quadrupled in 2009 according to an unaudited trading update issued after the Irish airline postponed publishing full results in a standoff with staff over cost-cutting measures.

The company's board was to meet later yesterday to adjust provisions for cost-cutting measures after cabin crew opposed a plan to reduce its annual operating costs by 97 million euros (Dh486.3 million) by shedding up to a fifth of staff.

The proposed plan to stop it burning through its cash reserves had been accepted by unions representing pilots, middle management, maintenance staff and by some ground staff and cabin crew.

Aer Lingus, which has fended off two hostile bids by Irish rival Ryanair, is reeling from aviation's worst year on record and saw its operating loss rise to 81 million euros from 20 million euros in 2008.

Three analysts surveyed by Thomson Reuters I/B/E/S had expected an operating loss of 86.8 million euros.

Total revenue at the airline declined 11 per cent to 1.2 billion euros as ancillary revenues — fees charged for services such as checking bags — helped cushion reduced passenger fares and cargo revenues.

Total passengers for the year rose 3.8 per cent to 10.4 million — less than a sixth of the number carried by Ryanair — as the former flag carrier charged passengers less to fly resulting in a 13 per cent fall in fare revenue.

Aer Lingus' shares — of which Ryanair, the government and employees control 70 per cent between them — rose 5 per cent to 0.63 euros.

"The numbers they gave weren't too bad — or were less worse — but you still have further details to come down the line and it's being very lightly traded. It's a little bit off the radar for a lot of people," one Dublin-based trader said.