Aer Lingus to Cut $100 Million Due to Falling Profits

New reports are now showing that analysts are expecting more job cuts from Aer Lingus. This news comes just after Aer Lingus concluded its trade union talks over plans to roll out a new $100 million cost cutting plan.

Just last week, Aer Lingus showed that its revenues fell by 10 percent in the last quarter when compared to the same quarter of 2008. This now has many industry analysts worried about just how fast the carrier is burning through money. At the end of September the carrier had a cash reserve of about $600 million, which is some 39 percent lower than what was seen in December.

A lot of the money problems for the company are seen on its transatlantic flights. These are the flights that go from London and Dublin to many different United States cities like New York, Chicago and San Francisco. This goes double now that many Americans find that the weak dollar makes prices in Europe way too expensive.

On top of all of this, Ireland is suffering from one of the deepest recessions in Europe. A recovery for Ireland is not expected anytime soon, thus Aer Lingus will be cutting about 676 of its staff in order to save money. Right now the workforce for Aer Lingus is about 4,000 strong.

The airline could also be selling some of its aircrafts in order to save some money. It is reported that they could be selling eight of their Airbus jets. It will be interesting to see if these plans from Aer Lingus are enough to keep the airline alive.