Aer Lingus issues 2009 profit warning

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Aer Lingus has issued a profit warning for the current year after reporting a €119.7 million loss for 2008. In 2007, the Irish carrier reported a profit of €124.8 million.

The airline has recently fought off Ryanair’s take-over bid, but is warning that the “rapidly deteriorating” air travel market is likely to increases its losses for 2009.

In a statement, the airline 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.”

The statement went on to say: “Since the start of the year, the continued and accelerating flow of negative economic data…has weakened consumer demand. Passengers are increasingly booking later and lower fares are necessary to ensure load factors remain stable.”

Aer Lingus has already revealed that it is reducing its workforce by 1,500 jobs and is warning that it may also reduce its capacity on long-haul routes.

Dermot Mannion, the Aer Lingus CEO, 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.”

Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.

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