Fuel price hikes and rising competition see Aer Lingus losses deepen to €103m

Chief executive Lynne Embleton said the airline was 'not immune' to the sharp rises in fuel prices

Lynne Embleton, CEO, Aer Lingus, pictured at Dublin Airport Pic: Naoise Culhane

Losses at Aer Lingus deepened at the beginning of 2026, totaling €103m in what the airline called typically the worst quarter of the year.

The company said the first three months of this year were hit by several additional challenging macro-economic factors, including fuel price hikes and rising carbon costs. This, Aer Lingus said, was further compounded by increased competitive capacity on transatlantic routes.

The quarter was also impacted by one-off items such as the closure of the airline’s Manchester transatlantic base.

Passenger numbers between January and March grew by 1.1% compared to the same three-month period in 2025, supported by new long-haul and short-haul routes, including Dublin to Cancún, Tromsø, Turin, a temporary direct service from Dublin to Barbados, which was brought over from Manchester, and new routes from Cork to Geneva and Prague.

In April, Aer Lingus also commenced a new direct service from Dublin to Raleigh-Durham in North Carolina and will start a new service to Pittsburgh on May 25. 

The airline said these routes are enabled by a new fleet of A321 XLR aircraft, the 6th of which was delivered to the airline in January 2026.

In March, Aer Lingus equipped its first aircraft with Starlink, delivering Wi-Fi to customers, adding that it will equip all aircraft with Starlink in a phased rollout, beginning with aircraft flying to North America, followed by those serving European destinations. 

Starlink Wi-Fi is expected to be available across the airline’s long-haul fleet by the start of 2027.

“The more challenging macro-economic environment is reflected in our first quarter financial performance," said Aer Lingus’ CEO, Lynne Embleton.

"While we are not seeing interruptions to jet fuel supply and we are confident of supply to operate our summer schedule, we are not immune to the impacts of sharp rises in fuel prices. 

"In the context of a potentially longer-term change in fuel prices and a more uncertain global environment, we are actively reviewing our cost base and our schedule beyond the summer to ensure that we operate as efficiently as possible and are positioned well for the future.”

In an earnings call with media, the chief executive said that while there is "a lot to be encouraged about" looking towards the winter, customers will see rising fuel costs reflected in higher prices. 

"We are going to have to pass on fuel costs," Ms Embleton said.

"This is a competitive market which is very reliant on supply and demand. Prices will be competitive, but these costs will need to be passed on at an industry level. 

The CEO added that the airline will have to consider its costs if the crisis in the Middle East continues into the winter. 

Responding to a question regarding potential job cuts at the airline, the CEO said: "We need to reduce costs to meet our targets," adding that the airline would consult with worker unions on how to achieve this.