Aer Lingus hit by dwindling passenger numbers
The global economic downturn has forced many airlines out of business as fewer people are travelling by air and Irish airline, Aer Lingus, is no exception.
According to the carrier, long-haul numbers plummeted 13% in the three months to September with sales falling by 9.7% in the same period.
However, the number of short-haul passengers was up 10% during the three month period.
During the third quarter, overall, the airline carried a total of 3.08 million passengers.
Last month, in a bid to cut costs, the group said it would reduce headcount by 676 in a bid to save €97 million (£90 million) over the next two years.
Furthermore, the airline urged staff earning more than €35,000 a year to take a pay cut in an effort to save the airline from collapse.
The company has already axed 100 staff and, at the time, refused to rule out compulsory redundancies and further job losses in the future.
In a statement today, the group said: “Yields continue to reflect the poor market conditions and weak economic environment.”
“While the fall in yield year-on-year continues, the pace of decline in average fares does not appear to be accelerating currently,” it added.
Despite today’s results, shares in the airline soared 11% as investors digested the news that the loss-making airline was stabilising.
Last week, British Airways (BA) posted a first-half pre-tax loss of £292 million for the six months to 30 September.
BA has been hit by a fall in business class passengers and said revenue fell 13.7% to £4.1 billion during the six-month period.
The International Air Transport Association recently said major airlines continue to suffer amid higher fuel prices.
According to the industry group, losses across the whole industry for the 2009 year could amount to £6.86 billion ($11 billion).