Aer Lingus on course to be Europe’s second largest transatlantic carrier

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Aer Lingus is on course to be Europe’s second largest transatlantic carrier, the airline’s chief executive said on Friday.

Speaking after the carrier reported stronger-than-expected full-year earnings for 2025 with operating profit up 38 per cent, Lynne Embleton warned, however, the company’s activity could be curtailed if the Government does not pass legislation to remove the passenger cap at Dublin Airport before October.

Acknowledging the increased level of competition on transatlantic routes, Embleton said the IAG-owned airline had been focused on growing its transatlantic routes with new services into Pittsburgh and Raleigh-Durham coming on stream this year as well more flights on its New York and Boston routes.

“We think by this summer we’re going to be the second biggest European carrier across the Atlantic when you look at number of destinations served,” she said.

“That’s quite remarkable for a country the size of Ireland, we’re really punching above our weight,” Embleton said.

Aer Lingus saw its operating profit jump by €77 million to €282 million in 2025 on the back of what it said was “robust revenue performance, favourable fuel pricing and capacity growth”.

Revenue rose by €153 million to €2.5 billion while the airline carried a total of 11.3 million passengers in 2025, up 2.9 per cent on the previous year.

However, its load factor, the level of seats it fills, fell by 1.1 per cent to 79.4 per cent.

Speaking on a conference call after the results, Embleton warned that the Government must have legislation abolishing the passanger cap at Dublin Airport in place by October or there would be negative consequences for jobs and the economy.

The airline fears the Government will not pass legislation removing the cap before the the Irish Aviation Authority (IAA) allocates take-off and landing slots at the airport for summer 2027 in October.

A failure to pass the legislation could oblige the IAA to limit airlines’ seat numbers at the airport next year in line with the impending Court of Justice of the European Union (ECJ) ruling.

“We just need legislation to get accelerated and the cap to be completely removed before October,” Embleton said.

Otherwise “it causes issues for jobs, it causes issues for the economy,” she said.

Minister for Transport Darragh O’Brien has said the Government recognised the strategic importance of Dublin Airport and would prioritise the legislation.

In its results, Aer Lingus reported an operating profit of €31 million in the final quarter of 2025, a €26 million decrease on the same period in 2024.

This followed a 45 per cent increase in transatlantic competitor capacity through the 2025/2026 winter season.

The strong overall performance for all of 2025 was driven by operating profits of €135 million and €170 million in the second and third quarters respectively, it said.

With 2026 coinciding with the airline’s 90th anniversary, Aer Lingus said it will operate its largest-ever transatlantic summer schedule.

Aer Lingus’s first direct service to Cancún, Mexico, also commenced in January.

“As we enter our 90th anniversary year, we are operating our largest ever transatlantic summer schedule, strengthening connectivity to, through and beyond Ireland,” Embleton.

“Continued investment in next‑generation aircraft and new technology, including our partnership with Starlink, underpins our focus on sustainable growth, enhanced service for our customers and long-term competitiveness,” she said.

“Looking ahead to the remainder of 2026, we will continue to focus on efficiency, productivity and making investments to improve operating margin and to realise Aer Lingus’ full potential,” she said.

IAG, which also owns British Airways, reported ​a better-than-expected annual profit on Friday as ​it benefited from lower fuel ⁠costs and resilience ‌on ‌its ​core transatlantic routes, particularly for its ⁠premium ​services.

IAG reported ​an operating profit ‌before exceptional items ​of €5.02 million, ⁠compared with ​€4.97 billion projected by analysts polled by LSEG. That’s up 3.5 per cent from last ‌year’s adjusted ⁠operating profit of €4.44 billion ‌.