A350 question emerges again as Aer Lingus faces pressure under IAG ownership

Aer Lingus ordered nine A350s in 2008 but IAG transferred four to Iberia and dropped remaining orders by 2021
Operating A350 on Los Angeles route would save €5m annually in fuel costs
Aer Lingus relies on A330 fleet for North American routes
Sustainable Aviation Fuel agreements cover 50 pc of Los Angeles and San Francisco needs
Restructuring plans include 500 job cuts and dropping Denver, Minneapolis and Las Vegas routes

Back in 2008, before being acquired by IAG, Aer Lingus ordered nine A350 aircraft designed to replace older long-haul planes and offered 25 pc greater fuel efficiency per passenger than the A330. The order was cancelled by new CEO Christopher Mueller, and new questions are being asked about an old decision as the airline faces a new cost cutting crisis.

Mueller was of the onion that they were the wrong aircraft for IAG and the then CEO of IAG Willie Walsh agreed. Following the acquisition, the aircraft never made it to the Irish flag carrier’s fleet. In 2019, IAG transferred four of the original orders to sister carrier Iberia. By 2021, the remaining orders were completely dropped from the Airbus book or transferred away. Aer Lingus continues to rely almost entirely on the A330 for its core North American long-haul routes, with IAG tying future fleet investments and widebody renewals to the airline meeting strict profit margins.

Because the airline misses out on the fuel efficiency of the A350, it has turned to alternative strategies to manage its transatlantic fuel bills. From 2026, Aer Lingus has activated supply agreements with producers like Gevo and Aemetis, handling 50 pc of its fuel needs out of Los Angeles and San Francisco. This provides enough SAF to equal 1,000 net-zero emissions flights between Dublin and LAX on its existing A330s. Facing severe fuel price headwinds and North Atlantic competition, the airline announced a restructuring plan to cut underperforming US routes such as Denver, Minneapolis, and Las Vegas, and will scale back the operational deployment of two A330s. Aer Lingus reported near-record profits yet faces demands from IAG for higher margins, prompting plans to cut 500 jobs and drop several North American routes.

Aer Lingus has faced persistent pressure under International Airlines Group ownership, with the carrier required to meet strict 12-15 pc operating profit margins while operating an ageing long-haul fleet. The airline would save roughly €5m a year in fuel costs if it operated the Airbus A350 on its Los Angeles route instead of its older Airbus A330 fleet. However, despite these potential long-term efficiencies, the airline never actually integrated the aircraft into its network.

Luis Gallego, IAG chief executive shared: “Capital will go to higher-margin parts of the group.”