Aer Lingus vows to break even as losses slashed

Aer Lingus vowed today to break even this year after the airline enjoyed a dramatic fall in financial losses.

The company, which is in the middle of a difficult €97m cost-cutting programme, suffered €19m losses for the six months to the end of June.

But that was an 80% fall on the losses suffered in the same period last year.

Chief executive Christoph Mueller said the improvements were significant despite difficulties caused by the Icelandic volcanic ash crisis and sluggish markets.

“Despite the group’s strong commercial performance, Aer Lingus has not been complacent in addressing its cost position,” he said.

“The group remains committed to implementing all aspects of the Greenfield Cost Reduction Programme in order to position Aer Lingus for a successful future.”

Mr Mueller added: “For the 2010 full year, we expect to report an operating performance (before exceptional items) of no worse than break-even.

“This would represent a good performance in difficult market conditions but is predicated on the delivery of committed staff productivity savings and no further significant disruptions to operations from industrial action or airspace closures.”

Aer Lingus carried 4.4 million passengers in the first half of the year, half a million fewer than the same time last year, but managed to reduce losses by 80% from €93m in January to June 2009 to €19m this year.

Aer Lingus is continuing efforts to avoid damage to operations through a planned work-to-rule by members of the Impact trade union over the cost-cutting exercise.

The union said the action should not cause any disruption to flights into or out of Ireland.

The dispute involving cabin crew centres on changes to rosters as management try to bring in 850 flying hours a year but the union claims this would see cabin crew work 60 hours over a seven-day period.

Cabin crew backed the controversial €97m cost-cutting drive last March after initially rejecting it, but the union has accused management of rolling ahead with revised work practices without the backing of staff.