Aer Lingus swings to loss, sees tough end to year

LONDON (MarketWatch) — Irish airline Aer Lingus Group said Thursday that it swung to a first-half net loss of 20.6 million euros ($30.3 million) from a profit of 6.8 million euros following a sharp rise in fuel costs. The group said overall revenue grew 10.4% to 606.2 million euros, helped by a 10.5% rise in the number of passengers and strong growth in ancillary revenue per passenger. The group said that even with the reduction in fuel prices in recent weeks, competitive pressure on fares and volumes will continue and it expects to at best break even in the second half of the year. “It is now clear that we will require further fundamental changes in our operating cost base in order to minimise losses in 2009 and to help ensure the long term viability of the business,” the group added.
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