Aer Lingus has reported operating profits of €205 million for 2023, marking a €20 million decline from the previous year. The airline attributed the drop to industrial action in July and increased competition from U.S. carriers at its Dublin hub during the second and third quarters.
Despite the setback, CEO Lynne Embleton emphasized the airline’s resilience and growth. “The summer results were impacted by industrial action, but what I think we see here is momentum in the business,” she told Morning Ireland.
Embleton highlighted a strong fourth-quarter performance, with a €56.7 million operating profit, a significant improvement over the same period in 2023. She pointed to new winter routes to Marrakesh, Malta, Seville, and Las Vegas as evidence of the airline’s expansion.
Impact of Industrial Action and Competition
Embleton confirmed that the cost of the strike was not passed on to passengers, noting that fares remained competitive despite increased market capacity, particularly on North Atlantic routes. She reassured stakeholders that there is no risk of further industrial action this summer, as the airline’s pay agreement with cabin crew and ground staff remains in place until the end of 2025.
Aer Lingus carried 11.018 million passengers in 2023, a 2.6% increase from the 10.74 million passengers in 2023. The airline expanded its North American network, adding new routes to Denver, Minneapolis-St. Paul, and Las Vegas, making it the fourth-largest European airline in terms of U.S. destinations.
Concerns Over Dublin Airport Restrictions
Embleton also addressed regulatory challenges, particularly the passenger cap at Dublin Airport. She described the current High Court stay as temporary and stressed the need for a permanent resolution.
“It’s well established that the value of aviation to the economy and to jobs is understood, and this passenger cap needs to be resolved on a permanent basis,” she stated.
She also raised alarms over proposed restrictions on nighttime flights, calling them potentially more damaging than the passenger cap.
“The idea that we built a €300 million runway only to reduce the number of prime-time movements from 110 per night to just over 30 would be devastating,” she said, warning that such a move could hurt business travel, flight scheduling, and airline efficiency.
Later, speaking to journalists, Embleton called the proposed restrictions “absolute madness,” emphasizing that they could disrupt flight connections between Europe and the U.S. and reduce investment in Ireland.
Sustainability and Growth Plans
Aer Lingus also made progress on sustainability, increasing its use of Sustainable Aviation Fuel (SAF) to 5,595 tonnes in 2024, up from 750 tonnes in 2023. The airline aims to reach 10% SAF usage by 2030.
Looking ahead, Embleton expressed confidence in the airline’s future. With new A321 XLR aircraft joining the fleet, Aer Lingus has ambitious growth plans that will benefit customers, employees, and the economy.
“We remain focused on improving efficiency and productivity to invest further in growth, customer experience, and sustainability,” she said.
Parent Company IAG Posts Strong Profits
Aer Lingus’ parent company, International Airlines Group (IAG), reported an adjusted operating profit of €4.44 billion, surpassing analyst expectations of €4.08 billion.
While Aer Lingus faced challenges in 2023, its strong Q4 performance, network expansion, and commitment to efficiency and sustainability signal a positive trajectory for the airline.
