Aer Lingus targets savings as profits flat

Irish airline Aer Lingus says it expects to cut more jobs as it seeks 30 million euros in savings, while it forecasts stable 2014 operating profits.

File photo of Irish airline Aer Lingus

Irish airline Aer Lingus says it expects to cut more jobs as it seeks 30 million euros in savings. (AAP)

Aer Lingus will cut more jobs as it embarks on a 30 million euros ($A45.96 million) savings plan, the Irish airline says as it forecast stable operating profits for 2014.

The outlook came as Aer Lingus on Monday said its net profit edged up to 34.1 million euros in 2013 from 33.9 million euros a year earlier.

Operating profit was in line with previous guidance but down 11.6 per cent to 61.1 million euros, the group said in its annual results statement.

Aer Lingus said it expected an operating profit "broadly in line" with 2013.

Sales, meanwhile, rose 2.3 per cent last year to reach 1.425 billion euros.

The long-haul arm of the business performed strongly, with revenue up 11.1 per cent to 381.6 million euros and passenger numbers up 12.2 per cent.

But short-haul revenue for 2013 was down 3.3 per cent as "extremely good weather in Ireland and northern Europe in the peak summer period" saw people staying home for holidays.

Chief executive Christoph Mueller welcomed the results, but told a conference call the company could have improved further.

"2013 was the first year of significant growth for Aer Lingus since the global economic downturn. While I am broadly satisfied with our financial performance ... I believe that we could have done better."

Mueller said Aer Lingus would focus on two key areas in 2014: service and cost.

He announced a two-year streamlining plan "with a total saving target of 30 million euros".

Chief financial officer Andrew Mcfarlane linked the company's cautious outlook to a pension dispute with staff, higher airport charges and an IT upgrade at the airline.

The airline's shares were down over 2.0 per cent to 1.57 euros in late afternoon trading on the Dublin stock market.


2 min read

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Source: AAP


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