Aer Lingus has reported a significant decline in operating profits for the third quarter of 2024, posting €139 million, down €57 million from the same period last year. Over the first nine months of 2024, the airline’s operating profits also fell to €148 million, down from €236 million in 2023, as it faced challenges from both industrial action and increasing competition, particularly on transatlantic routes.
The airline cited a €55 million direct impact from the summer industrial action by pilots, which affected operations in both the second and third quarters of the year. The strike also led to a negative impact on forward bookings. Additionally, a 20% increase in capacity by competitors on North Atlantic routes placed pressure on Aer Lingus’ long-haul revenues, especially in the economy cabin. Despite these challenges, the airline noted a strong demand for popular sun and European city destinations.
In a statement, Aer Lingus welcomed the recent decision by the High Court to grant a stay on the Irish Aviation Authority’s (IAA) plan to reduce capacity at Dublin Airport next summer. This ruling, which prevents a 5% reduction in seat availability for Summer 2025, is seen as a critical step in addressing capacity concerns at the airport.
Looking ahead, Aer Lingus is planning for growth despite the uncertain market conditions. The airline will introduce six Airbus A321 XLR aircraft into its fleet over the next two years, with new long-haul routes to Nashville and Indianapolis set to begin in April and May 2025, respectively.
CEO Lynne Embleton highlighted the importance of resolving the ongoing passenger cap issue at Dublin Airport. While the High Court ruling provides some relief for next summer, she warned that uncertainty remains for future seasons. Embleton expressed hope that a permanent solution would be reached, allowing the airline to expand its capacity and better plan for growth.
Embleton also addressed the competitive pressures in the North Atlantic market, where increased capacity from rivals has made conditions challenging. However, she expects this surge in supply to stabilize over time, allowing for a more balanced market.
In addition to fleet expansion, Embleton emphasized the need for government support in establishing Sustainable Aviation Fuel (SAF) in Ireland, which she believes will be vital for the future of the airline industry.
Despite these challenges, Aer Lingus’ parent company, International Airlines Group (IAG), reported a 15% increase in operating profits for the third quarter, outperforming analysts’ expectations. The group’s strong performance was driven by robust demand on transatlantic routes and efficient cost management.
Looking forward, Embleton remains optimistic about Aer Lingus’ prospects, with plans to “reset” in 2025 and return to stronger profitability.