Aer Lingus delays delivery of Airbus craft as it cuts long-haul services

AER LINGUS, the state’s second-biggest airline, will delay taking delivery of Airbus aircraft as it cuts long-haul services.

Deliveries of three A330s will start in the third quarter of 2013 and the first of its six A350s will arrive in 2015, the airline said. The company didn’t say when the planes had been due to arrive. Aer Lingus is looking to cut costs as it fights a slowdown in demand for travel. The company, which is also reducing the number of aircraft in its fleet by ending two leases early, said in June it will lower seat capacity on winter long-haul services by about 25%.

“These agreements represent a successful outcome for Aer Lingus,” the company said, adding the delivery plan was negotiated at “no additional cost”.

“Aer Lingus has an overhead it can no longer afford,” Joe Gill, an analyst at Bloxham Stockbrokers said.

“The changes also heighten the need to restructure costs across the business.”

The airline will reduce its long-haul fleet to eight from nine by the end of the year.

Aer Lingus shares rose 1.1% to 47 cents in Dublin, giving the company a market value of €253.6 million. Aer Lingus director of corporate affairs Enda Corneille said the market remains “extremely challenging” and he doesn’t expect a significant increase in demand in the short-term.

Goodbody Stockbrokers analyst Eamonn Hughes said Aer Lingus was struggling on its long-haul profitability. “This deferral plan is very welcome in the face of the strong competition on the routes and the drag on the group’s net cash position from the capex plans.”

Aer Lingus appointed Christoph Mueller as its new CEO last month.