Aer Lingus full-year operating loss quadruples

Tuesday 9th March 2010

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 will meet to adjust provisions for cost-cutting measures after cabin crew opposed a plan to reduce its annual operating costs by 97 million euros ($133m) 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 also reeling from aviation's worst year on record and saw its operating loss widen to 81 million euros from 20 million euros in 2008.

Total revenue at the former flag carrier declined 11 percent to 1.2 billion euros as ancillary revenues - fees charged for services like checking bags - helped cushion reduced passenger fares and cargo revenues.

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