From TravelMole:
Aer Lingus plunges into red
Aer Lingus made an operating loss of almost £18 million (22.3 million euros) on the first half of the year.
The plunge from an operating profit of 2.6 million euros in the same period last year came with a warning that the Irish carrier would at best break even in the second six months of the year.
Soaring oil prices were blamed by chef executive Dermot Mannion, who said the airline had been operating in extremely difficult market conditions.
The airline, which operates 42 aircraft, saw its fuel bill rise by 56.5 million euros in the half year.
Revenue was up by 10.2% to 632.9 million euros and passenger carryings were also by up 10.5%.
But against a background of slowing economic growth, the carrier faces making more cost cuts which could include staffing and its flight network.
Mannion was quoted as saying that without making “fundamental cganges” to its cost base, Aer Lingus would make a larger loss next year.
“Even with the reduction in fuel prices over the last few weeks, competitive pressure on fares and volumes will continue and we are best expected to break even in the second half, delivering a loss for the full year,” he said.
by Phil Davies
By: rdc1000 - 29th August 2008 at 22:34
That may be, but I’m guessing the Government would step in at some point to help save them.
Hey, don’t brand the Irish Govt with the same stamp as the Italians and Greeks!!! The truth is that there is very little the Govt could do without suffering the wrath of the EU.
HOWEVER, that said…I think we can safely assume that one quarter in the black isn’t going to lead to the end of EI. There are a number of airlines that have been loss-making for much longer, and with much bigger losses, and they’re still here, waiting to eventually come back into profit. One, two, or even three quarters isn’t a real problem, many of these airlines can loss make for years. Zoom is a different beast, not least because it wa sunderfunded and living from day to day financially, this isn’t the position that many of the incumbent carriers are in.
By: symon - 29th August 2008 at 21:03
Actually Ryanair owns a larger share of Aer Lingus now than does the Irish Government. It’s interesting to ponder what they would do if Aer Lingus was in serious trouble!
That may be, but I’m guessing the Government would step in at some point to help save them.
By: Short finals - 29th August 2008 at 20:00
Aer Lingus has the benifit of cutting back services/routes and storing aircraft, where as Zoom operated with a much tighter operation. Additionaly, Aer Lingus has the benifit of the Irish Government stepping in if things really get bad.
Actually Ryanair owns a larger share of Aer Lingus now than does the Irish Government. It’s interesting to ponder what they would do if Aer Lingus was in serious trouble!
By: Ren Frew - 29th August 2008 at 17:07
What are the chances of Aer Lingus becoming the next Zoom? 🙁
They’ll never paint the fleet blue…:D
By: symon - 29th August 2008 at 16:35
Aer Lingus has the benifit of cutting back services/routes and storing aircraft, where as Zoom operated with a much tighter operation. Additionaly, Aer Lingus has the benifit of the Irish Government stepping in if things really get bad.
By: Arabella-Cox - 29th August 2008 at 15:28
What are the chances of Aer Lingus becoming the next Zoom? 🙁
By: Ren Frew - 29th August 2008 at 01:03
I think we will see this trend continuing for the near future. I know a number of families now that have taken to camping holidays because flying and package holidays are becoming out of reach for people and families that could afford them a few years ago.
Yes indeed, the often predicted and so called ‘airline blood bath’ would appear to be gaining momentum. A real shame and indicitive of the times we live in.
Here’s to alternative fuel sources ASAP or it’s back to horse and carts for us all..
By: symon - 28th August 2008 at 23:24
I think we will see this trend continuing for the near future. I know a number of families now that have taken to camping holidays because flying and package holidays are becoming out of reach for people and families that could afford them a few years ago.
It’s a good time for middle eastern tourism….not only was their (for example the UAE) tourism starting to boom anyway, the fact that they can more easily afford to operate due to local fuel prices may mean these airlines are going to benifit from this situation!
By: JetSet - 28th August 2008 at 22:04
I think we will see this trend continuing for the near future. I know a number of families now that have taken to camping holidays because flying and package holidays are becoming out of reach for people and families that could afford them a few years ago.
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August 28, 2008 at 6:14 pm