Aer Lingus has issued a profits warning due to weak bookings during the summer and “intense competition” on prices.
The Irish carrier said that it now expected to make an operating profit of around €60 million for the current financial year – around 15 per cent below its previous forecast of matching last year’s operating profit of €69.1 million.
Aer Lingus’ warning came just days after Irish rival Ryanair announced its own profits warning, which was also partially blamed on the hot summer weather.
“The current booking profile for the rest of the year suggests that despite more aggressive pricing in response to market conditions, it will not be possible to recover lost volumes experienced in July and August as a result of the warm weather,” said Aer Lingus in a statement to investors.
“In addition, the intensely competitive pricing environment will continue to impact higher yielding in-month bookings.”
Aer Lingus added that it intended to cut short-haul capacity by at least 3 per cent in the final three months of 2013 compared to the same quarter last year.
The Irish carrier added that its long-haul business “continues to perform strongly” and were ahead of last year’s bookings.