Aer Lingus has reported an operating loss of €34m for the first half of 2026 compared to an operating profit of €80m the same time last year.
Earlier this month Aer Lingus said that up to 500 jobs could be cut at the airline due to a planned 6% reduction in its flight capacity.
Under the cost-cutting plan, 290 roles are under threat in head office functions, along with 140 cabin roles and 70 pilot positions.
Aer Lingus said today that its costs increased by 8% in the first half of the year and passenger revenue decreased by 3%.
It noted that while passenger numbers rose by 1.2%, increased competition impacted fare revenue, particularly on its North Atlantic routes.
The airline fared very differently between the first and second quarters of 2026. It posted a loss of €103m in the first three months of the year but actually posted a €69m operating profit between April and June.
Aer Lingus said its loss in the first half of the year reflects structural challenges in its operating environment, including significantly increased competition, particularly across the North Atlantic, increased supplier and carbon costs, macro-economic impact on demand, a weaker yield environment as well as increased seasonality of the airline’s business.
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The airline, which is owned by IAG, has also faced significantly elevated fuel costs in 2026.
“Aer Lingus is focused on strengthening the profitability of the business by reducing costs, improving efficiency and growing revenues through strategic investments in customer experience, including the roll-out of high-speed Starlink Wi-Fi on board in 2026 and in 2027 the retrofit of ten Airbus A330 aircraft cabins and the introduction of Premium Economy,” the airline said.
Aer Lingus chief executive Lynne Embleton said the airline is facing ongoing structural challenges in its operating environment, whilst also being impacted by elevated fuel costs, both of which are reflected in the half year financials.
“The steps taken to accelerate the transformation of the business will assist in addressing the structural challenges by reducing cost, improving efficiency and improving operating margin,” the CEO said.
“Taking the required steps to improve cost efficiency and productivity is essential to achieving and sustaining a 12% to 15% operating margin. This will create the platform to attract investment, improve our customer experience, support future growth and build a stronger Aer Lingus for the future,” she added.
Planned job cuts ‘corporate greed on display’ – Fórsa
In an update issued to members on Wednesday, the Fórsa trade union branded the planned job cuts at Aer Lingus as “corporate greed on display”.
The union said it is opposed to compulsory redundancies and added that when discussing voluntary redundancies, it will accept no less than the terms afforded to other IAG carriers.
It pointed to a recent Iberia package which included 35 days of pay per year of service with a minimum payout of a full year’s pay.
“It is in your best interests to negotiate and communicate any interest in voluntary redundancy through Fórsa, who will be negotiating the terms with the company,” according to the update.
“Fórsa will not allow corporate greed to be prioritised at the expense of the loyal workforce, who stood by the company during Covid-19, especially when generous dividends have been paid to extremely wealthy shareholders for the last two years,” the union said.
“The Group of Unions told the company that if any union finds themselves facing compulsory redundancies every union is committed to defending that position,” it added.
In a call with reporters, Aer Lingus CEO Lynne Embleton was asked about union claims that the job cuts were being driven by “corporate greed”.
Ms Embleton said the airline was loss-making at this point of the year for the first time since Covid and that it is a long way off meeting the hurdle of a 12%-15% operating margin.
“We need a pathway to that operating margin and that really matters because of aircraft decisions that are coming up,” Ms Embleton said.
“We need a pathway to demonstrate that investment hurdle so we can get aircraft and can grow. It is incumbent on everybody in Aer Lingus to come together and have that pathway,” the CEO said.
“Productivity and the operating cost has to play a part in that pathway and that’s why we really our unions and our colleagues to come together and engage with us,” she added.
Ms Embleton also said that she does not think the airline will be loss-making for the full year.
“I think we will see low single-digit margins this year but as we look into 2027 and 2028, we don’t see ourselves without the transformation acceleration getting to that investable margin,” the CEO said.
