Aer Lingus chairman John Sharman has criticised the slow pace of negotiations with trade unions on restructuring the airline.
He told reporters this morning that pay costs were now running higher than hoped for by management. The company said it wanted to reduce costs by the equivalent of 480 jobs this year.
Mr Sharman said the airline needed between €1 billion and €1.5 billion for new long-haul aircraft.
Earlier, Aer Lingus announced record operating profits of €107m for last year, up 29% on 2003.
The number of passengers travelling with the airline rose by 5.5% to 7 million with two thirds of its bookings now being made over the internet.
While the airline's operating profits are up almost one third, sales rose by a modest 2% to over €900m - partly reflecting the low fares that Aer Lingus is now charging.
Pre-tax profits were €1.1m, down from €79.4m in 2003, as there were exceptional costs of €102.5m. These were mostly linked to the cost of cutting staff numbers through lay-offs and early retirement during the year.
Today's results reveal that the number of passengers flying transatlantic routes rose by 7%, while in Europe - where the airline has started flying to several new routes - passenger numbers were up 25%.
Staff numbers fell almost 9% to just under 4,000 during the year.
While the financial results are healthy, the airline is left facing some uncertainties. It is still awaiting the appointment of a chief executive since Willie Walsh left in January. The Government has also to make up its mind if it is to privatise the airline.
