Aer Lingus 'stabilising' despite slide

Nov 10 2009 by Peter McCusker, The Journal

EMBATTLED airline Aer Lingus has reported a further slide in revenues, but said performance was “stabilising” after efforts to cut aircraft and capacity.

The Dublin-based carrier, which last month unveiled plans to cut a fifth of its workforce, announced it was stripping out another plane from its long-haul service, to trim winter and summer 2010 capacity further.

Revenues fell 9.7% year-on-year in the third quarter, although the number of passengers rose 7% and the group said it was filling its planes better, with the load factor up across long and short haul flights.

Fares plunged by 17.6% on average in the three months to September 30 as the airline struggled against the consumer spending slump.

But Aer Lingus said the pace of decline in fares had levelled off and an 8.5% rise in sales per passenger on extra charges for short haul flights, such as checked-in baggage and advanced seat booking, also helped.