Irish flag-carrier Aer Lingus is having to adjust restructuring provisions following the results of staff cost-cutting ballots, forcing it to postpone the release of full-year financial results.
In a trading update the airline states that, before exceptional items, it made an operating loss of €81 million ($110 million) for the year - comprising a loss of €93 million in the first half and a €12 million profit in the second.
But the carrier has yet to confirm a date for its preliminary results disclosure, after deferring their planned release today. Aer Lingus says that they originally contained a restructuring charged based on cost-saving agreements reached with union representatives.
Five of the airline's personnel groups have been voting on cost-saving measures. Four of these - pilots, middle management, maintenance and ground-support crews - have accepted.
But cabin crew belonging to the Impact union have rejected proposals put to them. This means Aer Lingus has to revise the restructuring figures in its financial results.
Aer Lingus says that, despite the cabin crew vote, it is "determined" to meet its €97 million cost-saving target. Its board will meet today to approve measures to achieve them.
"These savings are vital to realign the cost base of the company and position Aer Lingus for a successful future," it says.
Aer Lingus' revenues for the year fell by 11% to €1.2 billion.
Source: Air Transport Intelligence news
