AER LINGUS will report an operating loss of more than €150 million in 2009, according to a dismal new forecast from Bloxham Stockbrokers.

In what he said was a “significant downgrade” for the stock, Bloxham airline analyst Joe Gill said the brokers were growing increasingly negative about prospects for air travel to and from Ireland, and was lowering its earnings expectations from a previous forecast of losses of €130 million.

“Losses of this magnitude require urgent action by the airline to address cash outflows and uncompetitive cost units. Under our new estimates, Aer Lingus cash balances will fall to under €300 million in early 2010 compared to €757 million at the start of 2008,” Mr Gill said.

Bloxham’s new forecast is 37 per cent below the consensus forecast among analysts, according to Bloomberg. Mr Gill said he expected average short-haul fares to fall by more than 15 per cent this year, with long-haul fares declining 20 per cent.

In the airline’s last trading update in April, it indicated that it was entering an “exceptionally tough” environment, while chairman Colm Barrington told shareholders in June that the airline was facing its “most difficult period” since it was launched 73 years ago.

The Aer Lingus share price fell 3 per cent in trading on the Iseq index yesterday, closing down 1 cent at 49 cent.

Elsewhere in the airline sector yesterday, Air France said its revenues in the first three months of 2009 fell 20.5 per cent to €5.2 billion, with a 19 per cent decline in its passenger business.

The revenues, details of which were issued ahead of Air France’s first-quarter results next Thursday, were below analysts’ forecasts and were described by NCB Stockbrokers as “horrific”.

Ryanair issues its first-quarter numbers on Monday.