Aer Lingus will lay off 500 staff

Aer Lingus will lay off 500 people in a major restructuring. 

The airline will reduce capacity and aircraft from next summer. This includes 300 jobs at its head office at Dublin Airport. There will be around 70 pilot redundancies and 130 cabin crew will be laid off.

The airline, part of the IAG group, which owns British Airways, Iberia and Vueling, had indicated that it planned to restructure its operations due to the challenges it was facing.

The airline said this morning that it continues to face a "challenging macro-economic environment" with competition on transatlantic routes increasing significantly. "Head office will consult with Aer Lingus employees and their representatives regarding operational and network changes," it said. "Up to 500 employees are likely to leave the airline as a result of these changes."

The carrier will begin implementing changes to its network from September. This will lead to a 6 percent reduction in overall flight capacity, affecting both long-haul and short-haul routes.

Aer Lingus says it will reduce the use of its two wide-body A330 jets and four short-haul A320 aircraft during the peak summer season next year.

Aer Lingus chief executive Lynn Embleton said the "accelerated transformation" aims to prepare Aer Lingus for the future, ensure the airline has a strong investment case and is able to weather the challenges in the industry.

"By investing in the customer experience and having an efficient cost base, Aer Lingus will be able to fulfil its ambition to be the best airline connecting Europe with North America, support future growth and continue to provide connectivity and a significant economic contribution to Ireland," she said.

They pointed out that Aer Lingus lost €103 million in the first quarter of this year - a period when airlines in the northern hemisphere typically make losses. High jet fuel costs have been a further problem for airlines.

Last year, Aer Lingus made an operating profit of €282 million, €77 million more than in 2024. The airline had suffered losses due to pilot industrial action in 2024.

Aer Lingus said it aims to "achieve and sustain" operating margins of 12 percent to 15 percent in order to attract medium-term investment from parent company IAG. Aer Lingus' operating margin last year was more than 11 percent. "Aer Lingus will make strategic investments to improve the customer experience and drive revenue across the business," it said.

The airline recently began installing high-speed Starlink Wi-Fi across its fleet.

Aer Lingus says it will refurbish 10 of its Airbus A330 aircraft cabins in 2027 and introduce 'Premium Economy' seats to provide "an elevated air travel experience for customers".