Aer Lingus has unveiled a major restructuring programme that will reduce flying capacity by 6% and could result in up to 500 job losses as it seeks to improve profitability. The airline aims to achieve a sustainable operating margin of 12-15% after reporting a first-quarter loss of €103 million and a 2025 operating margin of 11.1%, the weakest among IAG's main airlines. Network changes, including the removal of lower-yield routes, will begin in September 2026 and continue through the 2027 summer season, reducing the need for two Airbus A330s and four A320s. Despite the cost-cutting measures, Aer Lingus will continue investing in customer experience through Starlink connectivity and premium economy upgrades on its A330 fleet. The airline says the transformation is intended to strengthen its competitiveness within IAG while positioning it for long-term growth.

Jet fuel prices have risen sharply across Europe, Asia and North America following renewed US-Iran tensions, which have disrupted shipping through the Strait of Hormuz and heightened supply concerns. European jet fuel prices climbed to around $1,176 per tonne, their highest level since May, while Singapore and New York also recorded significant increases. Falling fuel inventories in Europe, stronger Russian demand and rising crude oil prices have added further pressure, with Brent crude increasing to $86.37 per barrel. The renewed volatility is expected to increase fuel costs for airlines worldwide.

The European Union Aviation Safety Agency (EASA) has advised airlines to avoid the airspace of Bahrain, Kuwait, Qatar, the UAE and parts of the Gulf of Oman due to heightened security risks linked to renewed US-Iran tensions. The advisory, effective until 29 July, warns of a high risk to civil aircraft at all altitudes, citing instability around the Strait of Hormuz and ongoing regional conflict. Airlines are urged to reroute flights and closely monitor the evolving security situation.