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

Business Live

  1.  
    12:17: Peter Sands safe?
    CEO of Standard Chartered, Peter Sands

    Is Standard Chartered's boss Peter Sands in trouble? According to Reuters the bank's board will discuss "succession planning" at a meeting later today. The newswire reports two sources claiming succession planning "would come up" at the meeting. Investors are beginning to agitate for Mr Sands' removal as chief executive after a bad 2014, it adds. The meeting is a regularly scheduled meeting, a spokesman for the bank said, according to the newswire.

     
  2.  
    12:00: Greek euro exit?

    More news from Greece. Bank deposits dropped in December, central bank data published today shows. Business and household deposits dropped 2.4% month-on-month to €160.3bn from €164.3bn in November, falling for a third month in a row, according to Bank of Greece data.

     
  3.  
    11:42: Greek euro exit?
    Greece's outgoing Finance Minister Gikas Hardouvelis, left, kisses the new Finance Minister Yanis Varoufakis during a handover ceremony in Athens,

    France has insisted Greece's debt will not be cancelled but at the same time has opened the door to negotiations to give the new government more time to repay it. Greek Finance Minister Yanis Varoufakis visits France on Monday and the French appear to want to facilitate talks between his government and European leaders. French economy minister Emmanuel Macron said earlier that Europe must hear the message from Greek voters,

     
  4.  
    Government Insolvency Statistics Via Email Mike O’Connor, chief executive StepChange Debt Charity

    The number of personal insolvencies in the UK remains above the historical average, but the news that it has fallen to under 100,000 for the first time in nine years is welcome, and reflects falling personal debt levels since the recession hit... Many household finances are still extremely fragile, and 20% more people came to us for help in 2014 compared to 2013.

     
  5.  
    11:17: Sainsbury's Argos venture
    sainsbury

    Sainsbury's has responded to tighter competition in food retail with a bid to flog more electronics and household wares. They've signed a deal with Argos to offer "a choice of over 20,000 non-grocery products" in 10 of their stores from this summer. Sainsbury's reported a half-year loss before tax of £290m in November and said that like-for-like sales had fallen 2.1% during the period.

     
  6.  
    Government Insolvency Statistics Via Email Simon Gompertz Personal finance correspondent, BBC News

    Fewer people went bankrupt last year, leaving the total number of personal insolvencies at its lowest since 2005. There were 99,196 individual insolvencies in 2014, down 1.8% on the year before, including bankruptcies, debt relief orders and Individual Voluntary Arrangements or IVAs. Bankruptcies were sharply down, by 17%, while IVAs rose slightly. Insolvency experts say the economic recovery has helped and creditors have been more willing to enter into informal repayment agreements with people in financial difficulty.

     
  7.  
    Saudi oil Via Email Roderick Macsween

    "As a former employee of Saudi Aramco of 25 years' standing and still consulting on a worldwide basis on their behalf, I can state without fear of contradiction that the wellhead cost per barrel of oil - irrespective of grade, i.e. heavy, light or extra light , averages out at between $6 to $8 per barrel.

     
  8.  
    10:30: House prices
    houses

    As standard, house prices in London are well ahead of the rest of the country. The Land Registry says average property values increased by 16.3% in December compared with a year earlier to £464,936. The east and south east also both saw steep rises in property values: up 10.3% and 10.8% respectively.

     
  9.  
    10:15: Paper review
    papers

    The Wall St Journal has a story on Standard Chartered chief executive Peter Sands feeling the pressure, telling senior executives at the bank they have "just a few months" to reverse the fortunes of the bank. The Times leads on Bank of England Governor Mark Carney's warning over German austerity plans. The FT says Goldman Sachs and France's SocGen may invest in peer-to-peer lending and The Telegraph reports on trouble for part of the government's foreign aid programme.

     
  10.  
    Shell earnings Via Twitter Victoria Fritz Business reporter, BBC News

    tweets: Expect a BIG backlash from environmental groups.@Shell has just announced that it WILL drill in the Arctic this yr after legal battles

     
  11.  
    Shell earnings Via Twitter Kamal Ahmed BBC Business editor

    tweets: Breaking; Shell announces it will drill in Alaska this year after delays. Needs to get the right permits - but wants to go ahead

     
  12.  
    09:44: House prices

    House prices grew by 0.6% in December, according to the Land Registry, which bases its index on house sale completions. That means house prices year on year grew by 7% nationally to £177,776 - just £3,372 below the last peak in house prices of £181,138 seen in November 2007.

     
  13.  
    09:31: Deutsche earnings

    Deutsche Bank says it expects operating cost cuts to continue in 2015 as fines loom. Its chief financial officer, Stefan Krause said: "We should see a decrease in the underlying cost base coming." Regulatory charges - finance people prefer that term to fines and being sued - are expected to increase in some areas, he said. "We have litigation settlements of the bank as well as other banks (and that) influences the operational risk map and that one is for sure going to increase," he added. "We regretfully can't give you a better outlook."

     
  14.  
    09:16: Market update

    Hong Kong and mainland Chinese stocks closed lower, in line with sharp declines across most Asian share markets. The Nikkei 225 index at the Tokyo Stock Exchange fell 189.51 points, or 1.06% to 17,606.22. The benchmark Hang Seng Index fell 1.07%, or 265.96 points, to 24,595.85. Analysts said the drop was down to declines on Wall Street and concerns that China's market regulator will clamp down on margin trading, which has helped to fuel a recent rally.

     
  15.  
    Saudi oil Via Email

    Benjamin Higgins says "about $15 a barrel". Tristan McCooey, goes with "about 3 dollars per barrel ". Dr Ian McCormick asks: "Isn't it about $4?" All good contributions.

     
  16.  
    08:45: Deutsche earnings
    dbk

    Deutsche Bank has reported a surprise pre-tax profit of €253m in the three months to the end of 2014, helped by an unexpected drop in litigation costs and a rise in trading revenue at its investment bank. Germany's largest lender was able to postpone major legal expenses in the quarter because a number of major cases have yet to be settled, but the threat of future fines still hangs over the lender, frustrating management's efforts to boost profit.

     
  17.  
    Shell earnings Kamal Ahmed BBC Business editor

    As the first of the major oil companies to report its figures for last year, Shell plays the role of the canary in the coal mine - or on the oil rig. After a rather sickly 2013, profits are actually up. But the impact of the low oil price is clearly biting. The company announced that it would be cutting investment over the next three years in new exploration and the development of oil and gas fields, a move that will raise fresh concerns about its business in the North Sea.

     
  18.  
    08:19: House prices
    The sun illuminates property in the historic city centre of Bath

    Nationwide says house price growth got off to a weak start in January with property values up just 0.3% in the month and 3.8% higher than the same month a year earlier. That marks the lowest rates of house price growth for 14 months.

     
  19.  
    Saudi oil Via Email Neil Carter, Business live reader from Devon

    "In the eighties it was one to three dollars a barrel. Today I expect that it is in the region of six to eight dollars. Some newer fields may have higher costs due to higher exploration and extraction costs, so maybe ten to twenty dollars a barrel."

     
  20.  
    07:55: Diageo results Radio 5 live

    "The results today show we are seeing a pick up in momentum," Diageo's John Kennedy tells Radio 5 live breakfast. "If you look at the overall picture... we've seen an emerging market slowdown... but the big developed markets... are performing well despite a muted recovery particularly in Europe." India is performing strongly, as is Mexico, he adds.

     
  21.  
    07:51: Diageo results
    guinness

    Distillers Diageo say profit for the six months to the end of December dropped to £1.36bn from £1.65bn as the pound strengthened and they suffered "lower income from associates and joint ventures".

     
  22.  
    07:41: Shell earnings

    Shell's has also pulled $15bn of investment in oil exploration over the next three years. It says organic capital investment in 2015 is expected to be lower than 2014 levels. "Shell has options to further reduce spending, but we are not over-reacting to current low oil prices and keeping our best opportunities on the table," it adds.

     
  23.  
    07:24: New fund BBC Radio 4

    Nigel Wilson, chief executive of asset manager and insurer Legal & General, says the firm will put £1.5bn for a new infrastructure fund in the UK on Today. "We are very long-term investors - 20, 30, 40, 50, years," he says. Longer-term financing from fund managers like him are the future rather than shorter-term bank lending, he says. Will £1.5bn be enough? He's attracting outside investors and will borrow money to grow the fund to about £25bn.

     
  24.  
    07:15: Royal Mail chairman
    mail

    Donald Brydon will step down as chairman of Royal Mail, the company says. The company is looking for a new one. Mr Brydon will carry on until the firm's annual meeting in the summer.

     
  25.  
    07:10: Shell earnings

    Shell has reported full year earnings (on a current cost of supply basis) of $19bn compared with $16.7bn a year earlier. Fourth quarter earnings were also higher at $4.2bn compared with $2.2bn for the same quarter a year ago.

     
  26.  
    06:58: Eurozone union BBC Radio 4

    Bank of England Governor Mark Carney yesterday said the eurozone needs fiscal union to manage monetary union. James Bevan, an asset manager CCLA, tells Today "a root cause of the problem is absence of growth," low money rates alone won't get growth going.

     
  27.  
    06:48: Shell results
    Car lights are seen streaking past an oil rig extracting petroleum

    Some discussion here on the business livepage as to just how cheap it really is to extract oil in Saudi Arabia. So we thought we'd open it up to the floor. How much do you think it costs Saudi Arabia - per barrel - to extract oil from the ground. Send your answers to bizlivepage@bbc.co.uk or tweet @bbcbbusiness. Usual rules apply: no peeking at the internet.

     
  28.  
    06:38: Shell results Radio 5 live

    How does the lower oil price affect alternative ways of exploring for oil such as shale? Michael Hewson of CMC markets tells Wake Up to Money shale oil exploration is largely dead in the water. Getting shale oil out of the ground is still far more expensive than getting oil out of the ground in Saudi Arabia, he says. What pushed up Saudi Arabia's oil extraction costs was the welfare programme the country introduced when the Arab Spring broke out in 2011. He adds Saudi Arabia can live with a low oil price for a long time.

     
  29.  
    06:23: Shell results Radio 5 live

    "I think there is a good chance that we could see a reduction in [Shell's] dividend and that could affect pension funds here in the UK," Michael Hewson of CMC markets tells Wake Up to Money. He doesn't see that happening just yet, but if the oil price continues to fall, or stays low for a long time, then he thinks it is unavoidable.

     
  30.  
    06:11: Shell results Radio 5 live

    Michael Hewson of CMC markets tells Wake Up to Money he expects Shell's revenues will be slightly lower when it publishes results later this morning. He is, naturally, interested in how Shell is coping with the lower oil price. He doesn't think "we've hit bottom yet" in terms of oil prices. "The Saudi's have still got their foot to the floor in terms of market share," he says. "The low hanging fruit in terms of getting oil of out the ground is gone," he adds.

     
  31.  
    06:01: Apple analysis
    apple

    Apple caught up with Samsung as the world's biggest smartphone seller in the fourth quarter of 2014, thanks to booming sales of its new iPhone 6, market researcher Strategy Analytics said. Strategy Analytics said Apple flogged 74.5 million handsets in the fourth quarter, compared to 51 million a year ago. Samsung shifted the same number, which for them was a reduction from 86 million the previous year.

     
  32.  
    06:01: Matthew West Business Reporter

    Morning. Do get in touch at bizlivepage@bbc.co.uk or tweet us @bbcbusiness.

     
  33.  
    06:00: Howard Mustoe Business reporter

    Good morning everyone. Overnight, McDonald's has said Don Thompson will retire as chief executive of the fast food firm to be replaced by British-born Steve Easterbrook, the company's current chief brand officer. We have house price data from the Land Registry at 09:30 and Shell's results to look forward to. Stay tuned.

     

Features

Copyright © 2015 BBC. 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.