Aer Lingus will not cut flights from Dublin Airport next summer, chief executive says

Carrier blames increased competition and industrial action for €88m slide in profit in first nine months of year

Aer Lingus aircraft at Dublin Airport.Picture Colin Keegan, Collins Dublin
Aer Lingus aircraft at Dublin Airport.Picture Colin Keegan, Collins Dublin

Aer Lingus will not cut flights from Dublin Airport next summer, according to chief executive Lynne Embleton, reacting on Friday to this week’s key court ruling on passenger caps at the gateway.

The High Court suspended a decision by regulators to limit airlines at Dublin Airport to 25.2 million between March and October 2025, air travel’s busy summer season, pending the outcome of a full hearing on the issue next month.

Ms Embleton said that the ruling meant “we do not have to reduce our capacity by 5 per cent” at Ireland’s biggest airport next summer.

Aer Lingus, rival Ryanair and several US carriers would have had to slash one million seats from their Dublin schedules had the court allowed regulators to impose the limit.

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This would have reduced flights at the airport, driving up air fares for holidaymakers next year. Aer Lingus told the court the limit would cost it €84 million.

“We have not put growth on our schedule and we have not taken capacity out,” Ms Embleton said of the airline’s existing plans for next summer.

She did not rule out expanding its schedule in light of the ruling, but cautioned that a 32 million a year limit imposed on the airport by planners 17 years ago would continue to create uncertainty until it is resolved.

Airlines including Aer Lingus are challenging the summer limit, and a winter maximum of 14.4 million, both set by the Irish Aviation Authority in light of the overall passenger cap, in the High Court next month. That could see the issue go to Europe.

Aer Lingus will receive six Airbus A321XL - extra long range - aircraft this year and next, opening up more opportunities for transatlantic flying.

Ms Embleton noted that it had already added new US destinations for next summer, including Nashville and Indianapolis. The airline could increase the frequency of flights to other North American cities, she added.

She was speaking after Aer Lingus reported that profits from its operations fell €88 million to €148 million over the nine months to the end of September.

The company blamed “the summer industrial action by pilots at the airline and by market pressures, particularly across the Atlantic”.

Pilots’ industrial action cost €55 million over the second and third quarters “with an additional impact on forward bookings,” it said.

At the same time US rivals added more flights on Irish routes, boosting seat numbers by 20 per cent and squeezing air fares, particularly for economy travellers. This hit Aer Lingus’ long-haul revenues.

However, demand from holidaymakers for flights to sun spots and European cities increased over the summer months, the airline noted.

“In the context of the competitive and cost environment and the uncertainty caused by the passenger cap, Aer Lingus has developed its network plan for 2025,” a statement said.

Aer Lingus owner International Airlines Group (IAG), which also owns Spain’s Iberia and Vueling, along with British Airways, said operating profit rose 15.4 per cent to €2 billion in the three months to September.

IAG expects its strong financial performance to continue for the rest of the year, the group said. It plans to return €350 million to investors by buying back shares.

Chief executive Luis Gallego said: “We achieved a very strong financial performance in quarter three 2024, with a 15.4 per cent increase in operating profit compared to the same period last year and improving our margin to 21.6 per cent.

“This is due to the effectiveness of our strategy and group-wide transformation. We are also delivering on our commitment to provide sustainable returns for shareholders,” he said.

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Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times