A major airline has announced it is to cut routes described as "poor performing", in a move that could see up to 500 jobs being cut. Aer Lingus said the changes are "essential" to improve its operating margins as it looks to secure future investment within its parent company, IAG.

The Irish flag carrier said it was facing a "challenging macroeconomic environment", increased competition on transatlantic routes, and rising supplier, carbon and fuel costs. The airline has already reduced senior management roles by around 25 per cent and is now proposing a further 25 per cent reduction in Head Office employee costs.

It also confirmed a 6 per cent reduction in both long and short-haul flights from late September through to next summer.

Passengers affected by the route changes will be "contacted directly and provided with re-accommodation or refund options", the airline said.

In its statement, Aer Lingus added: "Aer Lingus will consult with employees and their representatives regarding the Head Office function changes and the network changes.

"These changes could see up to 500 employees leaving the airline.

"With many fleet decisions upcoming, Aer Lingus will also engage with employees and their representatives on cost efficiency and productivity so that the airline can be an investment case within the IAG group.

"The more cost efficient and productive the airline is, the more it will be able to fulfil its network and growth ambition.

"The consultation and engagement process will focus on reducing redundancies and potential future redundancies and on what needs to be done to secure future investment in the business."