Aer Lingus warns of 20% profits hit

Aer Lingus staff protesting at the entrance to Dublin Airport Aer Lingus cabin crew called a strike over rotas

Related Stories

Irish airline Aer Lingus has warned annual operating profits will be 10-20% lower than last year following a strike by cabin crew.

The airline said a one-day strike last month and the threat of walk outs on 16 and 18 June had hurt future bookings.

On Wednesday, union leaders postponed the strikes following talks with the airline.

Aer Lingus said the exact impact on profits would depend on how quickly it could win back customers.

In a statement, the carrier said: "Aer Lingus welcomes the indication given last night by Impact, following an intervention by the Labour Court yesterday, to defer the further two days of strike action that had been called for 16 and 18 June 2014.

"This deferral is to allow consideration of an interim recommendation to be issued by the Labour Court today.

"However, the threat of this strike has caused significant damage to Aer Lingus' trading and forward bookings for several months into the future."

Two hundred flights were disrupted at the start of Ireland's bank holiday weekend on 30 May, as 1,200 cabin crew went on a one-day strike arguing that their rosters were erratic and imposed excessive fatigue on them.

Cabin crew have called for a new five days on, three days off roster system

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    BORIS ISLAND 07:04:

    "The Airports Commission has today (2 September 2014) announced its decision not to add the inner Thames estuary airport proposal to its shortlist of options for providing new airport capacity by 2030. Following detailed further study into the feasibility of an inner Thames estuary airport the commission has concluded that the proposal has substantial disadvantages that collectively outweigh its potential benefits." A firm no, as expected.

     
  2.  
    MARKETS 06:56: BBC Radio 4

    BlackRock is the world's largest asset manager with more than $4.5 trillion under management. Its investment boss Ewen Cameron Watt, discussing why markets are so steady in the face of so much global tension tells Today: "Volatility is exceptionally low by historical standards and there's too much money chasing too few assets."

     
  3.  
    HSBC SHARES 06:42: Radio 5 live
    hsbc

    Ewen Cameron Watt, Chief Investment Strategist of the BlackRock Investment Institute, is now on 5 live talking about the news Neil Woodford, the fund manager, flogged his HSBC shares. "Neil bought HSBC because it was one of the few banks where he thought there was some dividend growth," he says. However, fines in the sector are likely to drain that prospect, he says. It's fines "more than anything that's sapping bank's willingness too lend, or ability to lend".

     
  4.  
    MARKETS 06:27: BBC Radio 4

    Today is looking at why stock markets are at a 52-week high when the political situation around the world is so dire - there's the threat of war in Europe and conflict in the key oil producer Iraq. Ewen Cameron Watt, chief investment strategist at Investment Institute of giant asset manager BlackRock says: "At this stage in the summer months the thought that Russia might affect sending gas to Europe is not a worry. [Energy stocks] are about 90% of capacity."

     
  5.  
    BANKING COMPLAINTS 06:12: Radio 5 live

    More from the Financial Ombudsman's Caroline Wayman. Fee-paying bank accounts are the cause of the increase in complaints about banking, she says. "People are getting in touch saying they didn't know they had a fee paying account or want one." People are "more aware but we see a lot of people who are reluctant to raise concerns," when coming forward to the service, she says. There are also more complaints about payday loans, but from a low starting point she says.

     
  6.  
    BANKING COMPLAINTS 06:02: Radio 5 live

    Caroline Wayman, chief executive of the Financial Ombudsman Service is on Wake Up to Money talking about complaints about banks. Complaints about payment protection insurance have fallen by almost a third, but complaints about other things in banking are up: "Still a lot of people get in touch, more than 1,000 people a day," she says. "We've had to expand a lot."

     
  7.  
    06:01: Howard Mustoe Business reporter

    Morning! Get in touch via email bizlivepage@bbc.co.uk or via twitter @BBCBusiness

     
  8.  
    06:00: Rebecca Marston Business reporter, BBC News

    Good morning and welcome to Tuesday's Business Live. Stick with us for the pick of the morning's news.

     

Features

  • Arsene Wenger, Diego Costa, Danny Welbeck Ins and outs

    Who will be satisfied and who left with regrets after transfer window? BBC Sport


  • Women doing ice bucket challengeChill factor

    How much has the Ice Bucket Challenge achieved?


  • Women in front of Windows XP posterUpgrade angst

    Readers share their experiences of replacing their operating system


  • Members of staff at James Stevenson Flags hold a Union Jack and Saltire flag UK minus Scotland

    Does the rest of the UK care if the Scots become independent?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.