Aer Lingus Still Optimistic Despite Poor Numbers
Stewart PerryThe Irish carrier Aer Lingus has just announced it has suffered further drops in revenue.
The recent Lingus news comes in a period of uncertain future for the airline industry as several other carriers around the world have been tangled in a struggle for their survival.
Despite the slide in earnings, Aer Lingus did also reveal some good news. In a bid to reduce its expenditure, the airlines recent cost cutting measures have benefitted the overall performance of the carrier.
The Dublin-based company has already announced a staff reduction plan which will see a fifth of its workforce being cut. But the airline has now revealed that it’s also planning to cut a further airplane reserved for its long haul service and shave off some capacity on its winter and summer 2010 scheduled flights.
Aer Lingus added that passenger numbers have actually jumped by 7 percent over last year. An increase in short haul passengers was seen as the reason for the surge. However, there was a decrease of nearly 13.2 percent in long haul travellers.
The carrier said that the average revenues stemming from commercial passenger service in the three-month period spanning from July to September actually decreased by 14.8 percent this year over 2008. The airline also claimed that average fares on its morning short haul flights fell by 12.3 percent year on year. Aer Lingus is planning to counter this decline with a 8.5 percent increase in auxiliary revenue per passenger.
Aer Lingus said that the present times are the worst the industry has ever lived through.
Contributing factors such as higher fuel prices, the recession and more and higher taxes are preventing people from flying.
Meanwhile, British Airways has gone through its share of problems, including its worst period of activity ever recorded and a looming strike from its cabin staff due to contractual changes.
Ba has claimed that it needs to cut its expenditure by reducing the number of cabin crew members on board each flight and freezing their salaries.
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Filed under Business & Finance, Europe News, Travel News, UK News