10-Nov-2009 12:15 PM

Aer Lingus to cut back long-haul operations, focus on shrot haul

Aer Lingus stated it would continue to cut back long-haul services in response to “challenging conditions” and is concentrating on short-haul operations (The Times/Reuters, 10-Nov-2009). The company reported that its actions to reduce capacity have helped to stabilise load factors and yields and reduce costs. The carrier noted the rate of decline for fares has slowed, while it has increased sales per passenger by 8.5% on short-haul operations through extra charges, including baggage and advanced seat booking.

Aer Lingus: "Cost increases in the form of higher fuel prices, airport and navigation charges together with further expected gross domestic declines and unemployment increases in our major markets will mean that we must continue to reduce any costs within our control so that we can cope with continued falling fares, compete and maintain balance sheet strength. Actions taken to remove capacity on underperforming parts of the network have had a positive impact on stabilising load factors and yields while reducing operating costs. While the fall in yield year-on-year continues, the pace of decline in average fares does not appear to be accelerating currently," Christoph Mueller, CEO. Source: Aer Lingus, 09-Nov-2009.

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