Aer Lingus lost €34 million in the first six months of the year as it battled higher fuel costs and increased competition.
The Irish airline recently announced plans to cut up to 500 jobs and axe routes over coming months to reduce costs.
Aer Lingus’ operations earned €69 million profit from the end of March to June 30th, half the €135 million it reported during the same period in 2025, the airline said on Friday.
The second-quarter surplus was not enough to offset the €103 million the business lost in the first three months of this year, leaving it with a €34 million shortfall in the first half of 2026.
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That compared with an operating profit of €80 million in the first six months of 2025.
Aer Lingus blamed tougher competition on the North Atlantic, “significantly elevated fuel costs” and increased bills from its suppliers for the loss.
The carrier’s owner, International Airlines’ Group (IAG), locked in 70 per cent of its fuel needs for this year before the US-Iran war sent oil prices soaring. But Aer Lingus still had to buy the remaining 30 per cent at far higher rates than it paid last year.
Jet fuel rose from around $70 a barrel before the war to around $150 in April. It was trading at around $100 in June.
IAG calculates that its airlines, which also include British Airways and Spain’s Iberia, could pay up to $8.6 billion in total for fuel this year.
Aer Lingus noted that overall costs increased 8 per cent in the first six months of the year over the same period in 2025. Revenue slipped 3 per cent even though it carried 1.2 per cent more passengers.
Chief executive Lynne Embleton said Aer Lingus planned to cut costs while improving efficiency and profitability.
The airline needs to boost operating margins, the difference between cost of doing business and revenues, to between 12 and 15 per cent to win new investment from IAG. Currently these margins are at around 10 per cent.
IAG said on Friday that operating margins across the group for the first half of this year were 10.9 per cent.
Embleton argued that the planned cuts at the airline would attract investment to “support future growth and build a stronger Aer Lingus for the future”.
Along with the cuts, the airline plans to invest in boosting services on flights. It will equip its aircraft with wifi this year. In 2027, it will refit 10 of its Airbus A330 long-haul aircraft and introduce premium economy seats.
IAG’s operating profits for the first six months of the year fell 16 per cent to €1.76 billion from €1.88 billion during the same period in 2025.
