Aer Lingus has consented to raise its pilots’ salaries while the airline industry grapples with unforeseen challenges. This comes after Ryanair, its main competitor, announced a 46% drop in profits to €360 million for the quarter ending June 30th. Ryanair anticipates summer ticket prices considerably lower than the previous year, rather than stable or marginally higher.
Travel trend data indicates that holidaymakers are looking for deals cheaper than those offered last year. This contradicts the airlines’ expectations of six months ago, where fare hikes appeared viable. With increasing competition on transatlantic routes, continued European competition with Ryanair, the limitation at Dublin Airport, and other issues, Aer Lingus finds itself in a complex situation.
Nevertheless, following the outcome of Tuesday’s vote, which revealed that members of the Irish Air Line Pilots’ Association (Ialpa) overwhelmingly endorsed a 17.75 per cent pay raise proposed by the Labour Court, the airline is set to begin salary augmentation. By October’s end, pilots will receive 10.75% of this raise, applied retroactively in stages dating back to early 2023.
The remaining sum will be paid until July 2026, accompanied by a hike in allowances. Ialpa’s president, Capt Mark Tighe, estimates a net increase in member remuneration of 19.2%. He applauded it as the largest pay increase in three decades, justifying workers’ strikes as a response to what he termed “management’s obstinacy”.
Aer Lingus may assert it gained from the agreement as well. It brings closure to pilot wage disputes stretching back to October 2022, when they initially demanded pay rises over 20%. The Labour Court also recommended termination of arrangements that permitted pilots extra summer leave—a move the airline equates to productivity gain. The deal caps salaries for pilots operating narrow-body aircraft at the 20th level in a 26-tier wage structure, which makes long-term operation of these aircraft more cost-efficient.
However, a potential issue remains. Existing agreements with cabin and ground crew allow these staff to review their contracts if Aer Lingus grants other employees wage raises exceeding the 12.25% that these crew members accepted without insisting on additional productivity. Contractual agreements with the cabin and ground crew extend to 2025, including a 1.5% bonus.
It remains unknown as to whether the merging of the bonus with their wages and amending summer leave, which amounts to an increase of 13.75% across a similar timeframe, as granted by the Labour Court to pilots, would quell demands from either or both ground staff and cabin crew. Fórsa, with Ialpa operating under its umbrella, is a representative body for the cabin crew, while Siptu stands for ground staff. Both parties are set to propose the agreement formed for pilots.