Aer Lingus has reported a pre-tax loss of almost €120m for last year, compared with a profit of €124.8m a year earlier, hit by a once-off €140.9m charge for its cost-saving programme.
When the restructuring charge was stripped out, pre-tax profits fell by almost 84% to €21.2m, as fuel costs jumped by almost 60%.
There was an operating loss of €17.6m.
The airline has also lowered its outlook for this year, saying it is unlikely to make a profit.
It says the weakening economy has hit its cargo business, while consumer demand has weakened.
Aer Lingus says passengers are increasingly booking later and lower fares are needed to keep its planes full. It expects average fares to fall 10% in 2009.
The 2008 results show that total revenue grew by 5.6% to €1,357m, while passenger numbers rose by 7.5% to 10m.
Aer Lingus Chief Executive Dermot Mannion described last year as extremely challenging.
'Falling consumer demand in key markets, a weakening dollar and sterling, and increased competition across the network combined to put sustained and significant pressure on our business throughout the year,' he said.
He also said that while Ireland would always be a core element of Aer Lingus, diversifying out of the Irish market was key to its success in the long-term.
