Aer Lingus Warns Of Market Nose Dive

Aer Lingus has warned that the soaring fuel costs and the global economy crisis has hit its financial performance.

The airline said that although it usually makes most of its profits in the key summer months, the current market conditions have made the budget airline entirely dependant on a successful summer.

According to the airline, the drop in business during the non peak months has had a serious impact on their yearly takings "resulting in operating losses in the first half and operating profits in the second half of 2008".

Aer Lingus also said the economic outlook in its main markets remains uncertain due to the currently slowing global market place, the record price of fuel and the current weakness of the US dollar and sterling. The airline did not as yet give an update on the performance of its Belfast International Airport base, which was launched late last year.

However, Aer Lingus is not the only Airline languishing in the struggling markets. On Monday, British airline Flybe has announced it is ending its flights from Galway Airport to Belfast and Southampton.

A spokesman for Galway Airport said Flybe had taken the decision as a result of a cost-cutting measure.

Galway Airport says it hopes the company will resume the flights next season and in the meantime it will be concentrating on its other key routes.

Meanwhile, further cost cutting measures have by the airline industry has driven the Dublin Airport Authority’s Fire and Police staff to announce plans to engage in industrial action.

A total of 92% of the SIPTU members voted in favour of industrial action on Tuesday. The SIPTU says the company has breached agreements in relation to a traditional pay link between the airport’s fire and police staff and the gardaí and fire service.

(DW)