Chief executive Lynne Embleton said there are no concerns that the airline will run short of fuel because of the energy crisis that has been sparked by war in the Middle East.
But Ms Embleton has warned that the carrier does need to manage its cost base in light of the challenges it is facing and has not ruled out job cuts at the company.
She said the airline will be engaging with trade unions to explore opportunities for cost savings and realigning the airline’s operating requirements.
“We are confident in our fuel supply for this summer,” she said. “We do believe customers can book with confidence this summer.
“With all of the coverage in the media over the last couple of months, we did see some weakness in bookings when this conflict first kicked off, but I’ve actually been quite encouraged with how bookings have been coming in.”
Aer Lingus has warned that jobs could be lost. Stock photo: Getty
News in 90 seconds – May 8
The airline chief said that short-term bookings for May and June have been particularly good.
There have been fears that airlines will be hit by a jet fuel squeeze because of the war against Iran, which has led to the closure of the Strait of Hormuz. The EU typically imports between 30pc and 40pc of the jet fuel used across the bloc. About half those imports come from the Middle East.
“We just need to reassert this message that the talk of fuel supply shortages causing summer chaos is completely overplayed and we believe we can be confident in our fuel supply for this summer,” said Ms Embleton.
Aer Lingus is part of the IAG group that also owns British Airways, Iberia, Level and Vueling. While the group reported a strong performance in the first quarter of this year, Aer Lingus posted an operating loss of €103m.
While the first quarter is usually a loss-making month due to the strong seasonality of Aer Lingus operations, the loss was nearly double the €55m that of the first quarter of 2025.
The airline has warned that it’s reviewing its cost base and schedule beyond the summer period.
IAG has a target of its airlines, including Aer Lingus, achieving an operating margin of between 12pc and 15pc to secure investment from the group. It’s a figure Aer Lingus is not currently delivering.
“Aer Lingus are all-out to achieve that margin,” said Ms Embleton. “Actually, we were getting close before this. In 2025, we were just over 11pc. But we are undoubtedly in quite a challenging situation now.”
“We have revenue actions – it’s not all about cost – in the transformation plan,” she added.
Aer Lingus has also been facing more intense competition on its transatlantic routes, primarily out of Dublin. That makes it tougher to pass on a higher proportion of increased fuel costs to transatlantic passengers.
“We are, as an industry, going to have to pass on fuel costs,” said Ms Embleton. “That is different by market. We are in a very competitive market.”
IAG expects its fuel bill for the whole of 2026 to be in the region of €9bn. That’s about €2bn more than it had previously forecast.
Ms Embleton said supplier costs are a significant focus for Aer Lingus, with its chief financial officer Nessa McNeela currently leading a programme to secure efficiencies and reductions in that cost base.
“We know we can make money in the summer and lose it in the winter, so if we’re able to reduce our winter costs and profile our costs differently, then we will be able keep more of the flying programme intact,” she added.
Ms Embleton said Aer Lingus is looking at its “size and shape” for 2027 in light of the fuel crisis, with jet fuel costs currently about double what they were this time last year. Fuel usually accounts for about a quarter of an airline’s costs. “We’re going to have to take our costs down,” she noted. “We will need to engage on how do we reduce our cost profile in the winter, when we do a lot less flying.”
In 2024, following debilitating industrial action, Aer Lingus pilots agreed to a bumper near 18pc pay increase over four years for its pilots.