Aer Lingus warns of lower profits due to industrial action

Aer Lingus has warned that full-year operating profits will likely be between 10 per cent to 20 per cent lower than 2013 because of the impact of industrial action.

In a trading statement the airline welcomed news that cabin crews had called off strikes planned for next Monday and Wednesday after 8 hours of talks at the Labour Court.

A strike late last month by cabin crew disrupted the travel plans of 28,000 passengers and cost Aer Lingus an estimated €10 million. It was estimated that 35,000 people each day would have been affected had the other planned strikes gone ahead.

Last month the airline reported positive trading for the first five months of the year, leading it to maintain its guidance that 2014 operating profits would be in line with the prior year, despite the effect of the June bank holiday strike.

However, it said on Thursday that the threat of further strike action had caused “significant damage” to trading and forward booking for the next few months. It said that assuming there is no further industrial action, operating profits (before net exceptional items) will be up to 20 per cent lower than last year’s € 61.1million. This implies that 2014 operating profits will be in the range of €48.9million to €55 million.

“The outcome will depend in part on the speed with which we can win back customer confidence,” it said.

In a bulletin notice to Impact union members, cabin crew branch chair Angela McNeela said that its executive had agreed, following a request from the Labour Court, that the strike action planned next week would be deferred to allow consideration of an interim recommendation.

Cabin crew at the airline had agreed to industrial action following a row with management over rosters. Cabin crew contended that existing rosters were erratic, exhausting and caused with their family lives.