# IAG May Force Aer Lingus to Shrink Network and Workforce to Meet Margin Targets

_Jun 16 13:42_

Tags: Aer Lingus, IAG, Lufthansa, airline, industry news

Parent company IAG is reportedly pushing Aer Lingus to cut routes and staff to achieve a 12-15% operating margin, despite the airline's strong recent financial performance

## Summary

IAG (International Airlines Group) is reportedly on the verge of forcing subsidiary Aer Lingus to shrink its network and workforce to meet a mandatory medium-term operating margin target of 12-15%. Although Aer Lingus reported its second-best financial results in history with a €282 million profit (11.1% margin) in 2025, this is considered insufficient by the parent company. Current IAG CEO Luis Gallego stated that existing transformation efforts are not enough and decisive actions are needed to restore financial performance. This move highlights IAG's disciplined, margin-focused strategy compared to competitors like Lufthansa Group, whose highest-margin subsidiary had lower margins than Aer Lingus. The cuts could significantly impact Aer Lingus' route network and employee base

## Why it matters

Affects 7 airline programs (Aer Lingus, Air France-KLM, British Airways...).

## Sources cited

- [One Mile at a Time](https://onemileatatime.com/news/profitable-aer-lingus-shrink-not-greedy-enough) — Profitable Aer Lingus May Be Forced To Shrink Because It’s Not Greedy Enough

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