Aer Lingus caution after flight chaos

Irish airline Aer Lingus was encouraged by a halving of its first-quarter operating loss but remained cautious on full-year prospects yesterday partly as it cannot gauge the impact of disruptions due to volcanic ash.

By The Newsroom

Published 4th May 2010, 23:55 GMT

Updated 4th May 2010, 23:55 GMT

Ireland again closed its airports for several hours due to a return of the ash cloud.

The former state airline said that last month's airport closures, lasting several days, would cut second-quarter earnings by about 20 million euros.

"However, the final cost will depend on the actual level of customer claims," it said in a statement, adding: "It is also uncertain whether the recent Icelandic volcanic eruptions will have a longer-term impact on passenger travel plans."

Aer Lingus, which has been cutting costs to survive the competition with former suitor Ryanair, said its first-quarter operating loss halved to 37.8 million euros.

"While we are very encouraged by first quarter trading, it is

nonetheless appropriate to remain cautious on full-year 2010

performance," the group said.