Aer Lingus’s profits will fall this year, chief executive, Lynne Embleton predicted after the airline said it lost €34 million in the six months to the end of June.
The Irish carrier earned €69 million profit from the end of March to June 30th, just half the €135 million it reported during the same period in 2025, according to figures published on Friday.
But that second-quarter surplus was not enough to offset the €103 million the business lost in the first three months of this year, leaving it with a €34 million shortfall for the first half of 2026, against a profit of €80 million during the same months last year.
Aer Lingus will still be profitable this year, Embleton forecast after it published financial results, but she cautioned that it was likely to be “low single-digit figures” – less than €10 million. The company earned €282 million profit last year.
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The news came as it emerged that airline management had met unions for initial talks on plans to cut up to 500 jobs.
Unions including Fórsa, which represents cabin crew and ground staff, and the Irish Airline Pilots’ Association (Ialpa), have warned against compulsory redundancies.
Ialpa noted on Friday that management confirmed the airline was seeking to cut 70 pilots’ jobs but indicated that discussions were only at a very early stage.
Aer Lingus says it must boost operating margins, the difference between cost of doing business and revenues, to between 12 and 15 per cent to win new investment from its owner, International Airlines Group (IAG).
Those margins were 9.8 per cent in the first half of the year, while IAG’s group-wide margins were 10.9 per cent.
The group’s chief executive, Luis Gallego, said the first half of the year included the least profitable January to March period, when margins are generally lower than during peak months.
“This year what we’re saying is they are going to be in the region of 12 to 15 per cent,” he added.
Aer Lingus blamed tougher competition on the North Atlantic, “significantly elevated fuel costs” and increased bills from its suppliers for its first-half loss.
IAG calculates that its airlines, which also include British Airways and Spain’s Iberia, could pay up to $8.6 billion in total for fuel this year.
Aer Lingus noted that overall costs increased 8 per cent in the first six months of the year over the same period in 2025. Revenue slipped 3 per cent even though it carried 1.2 per cent more passengers.
Embleton argued that the planned cuts at the airline would attract investment to “support future growth and build a stronger Aer Lingus for the future”.
Along with the reductions, the airline plans to invest in boosting services on flights. It will equip its aircraft with wifi this year. In 2027, it will refit 10 of its Airbus A330 long-haul aircraft and introduce premium economy seats.
IAG’s operating profits for the first six months of the year fell 16 per cent to €1.76 billion from €1.88 billion during the same period in 2025.
