Aer Lingus chief executive Dermot Mannion has warned that the airline needs “fundamental change” if it is to minimise a potential €100 million operating loss in 2009.
In an interview with the Financial Times, Mr Mannion said a series of cost-cutting measures would be announced by the end of the month.
He said: "Everything is up for review. The challenge must be faced quickly . . . Fundamental change must happen. We must take out costs to reduce a potential €100m operating loss in 2009."
Mr Mannion said Aer Lingus intends to be one of the survivors in an industry that has seen more than 25 airlines go out of business so far this year.
He said it cost Aer Lingus €80 to produce a short-haul seat compared with €60 at EasyJet and €40 at Ryanair, with the biggest cost differences being in labour and sales and distribution.
Last week Aer Lingus reported that it had made an operating loss of €22.3 million for the first half of the year compared with a profit of €2.6 million for the same period in 2007, largely because of rising fuel costs.
Although its revenues rose by 10.2 per cent to €632.9 million, the increase was virtually wiped out by the rise in its fuel bill.