The document discusses the challenges facing the European airline industry after 2001, including massive losses for major airlines. It then outlines how Aer Lingus addressed the crisis by implementing radical cost reductions of over €190 million or 16% of costs, cutting staff by 33%, lowering fares, and simplifying operations. As a result, Aer Lingus has seen increased passenger numbers and load factors, higher profits, and improved financial position despite a challenging market.

1. The Future of European Air Transportation Challenges and Opportunities

8. Ireland – Heathrow average yields 2001 to date 2002 €86.12 2003 €70.86 2001 €101.27

9. Ireland – Heathrow average yields 2002 2001 €101.27 2002 €86.12 2003 €70.86

10. Ireland – Heathrow average yields - actual versus “plan” 2002

11. Ireland – Heathrow average yields - actual versus “plan” Plan assumed return to 2000 levels of Premier Traffic “ Plan” €100.71 Actual €86.12 € 31.48 2002

14. Cost reductions achieved to date - €344 Million

15. Change in business model

16. Cost reductions achieved to date - €344 Million

25. Average Premier bookings per flight - 2003 Premier Class withdrawn from all routes except for flights to Heathrow and from Dublin to Brussels, Amsterdam, Frankfurt, Manchester, Birmingham, Edinburgh and Glasgow

29. Profit and Loss

30. Balance Sheet

31. Key statistics – Continuing operations