Aer Lingus says savings of €40m to €50m will be made this year - and €47m next year - from its restructuring plan.
In a statement released ahead of its Investor Day in London, the airline also said it anticipates lower fuel costs will help to offset lower revenues because of the recession and reduced capacity on long haul flights.
Aer Lingus says its revised strategy is to focus on managing costs and revenue to drive profitable growth.
This means it is expanding into currently un-served short-haul markets, partly with the help of a new franchise arrangement with Aer Arann.
It also wants to improve long-haul connectivity into Asia, and it will do this by improving its partner network and alliances with other airline groups.
Aer Lingus says conditions this year will remain extremely challenging.
Full-year revenues will be lower than in 2009 with the first half particularly weak.
