Irish airline Aer Lingus plans to cut flight capacity by six per cent and reduce its workforce by up to 500 jobs as part of organisational changes aimed at addressing rising costs and intensifying transatlantic competition.
The airline, part of the IAG Group, said in a statement on Thursday (16 July) that the changes are “essential” to reach an operating margin of between 12 per cent and 15 per cent after posting losses of €103 million in the first quarter.
Aer Lingus said this margin increase would be necessary to “attract investment over the medium term” and address rising fuel prices and supplier costs. The carrier also noted that transatlantic competitor capacity had increased “significantly”, up 45 per cent in the winter 2025-2026 season.
The planned capacity cuts will begin to take effect from late September 2026 and continue into summer 2027. This includes flights from Dublin to Denver, Minneapolis, Las Vegas and Split in Croatia, which will be axed this autumn. The move follows the carrier’s decision in March to cut all transatlantic flights from Manchester after closing its base at the UK airport.
In addition, Dublin-Seattle flights will operate as a summer-only service from 24 October. Short-haul services from Dublin to Frankfurt, Hamburg and Malta will also become summer-only from November.
The staff cuts could involve pilots, cabin crew and 25 per cent of workers at the airline’s Dublin head office. The carrier has already reduced senior management roles by approximately 25 per cent.
Aer Lingus CEO Lynne Embleton said the changes aim to “set Aer Lingus up for the future, to ensure the airline is a strong investment case and able to weather the turbulence in our industry”.