Aer Lingus announced traffic statistics for the month of May 2009 today and said total passenger numbers increased by 2.7% to 972,000 in May 2009 compared to May 2008, being a 6.0% increase on short haul and a 21.1% reduction on long haul. Separately, the airline has agreed to cut its directors' fees.

Aer Lingus’ overall load factor in May decreased by 2.4 points versus May 2008. Short haul load factor was 78.1%, which was 2.2 points down on 2008, while capacity increased by 14.9% year on year.

Long haul load factor was 66.2%, which was down 5 points versus 2008, with capacity decreasing by 19.3%.

In related news, the airline has agreed to cut directors' fees in response to AGM resolutions tabled by its shareholder Ryanair.

The Irish Times reports today the Aer Lingus move on fees follows a letter sent to Aer Lingus chairman Colm Barrington yesterday by Julie O’Neill, secretary general of the Department of Transport, indicating that Minister for Transport Noel Dempsey wanted the airline to reduce the fees paid to the board in light of the current economic slump and the company’s stated intention to seek further cost-saving measures from staff.

“He [Mr Dempsey] has asked that I convey to you his view that it would be desirable if the board were to review the level of such fees having regard to current norms for companies with similar market capitalisation and in similar circumstances to Aer Lingus,” Ms O’Neill stated.

The letter added that the Minister felt that it would be “appropriate in the context of the continuing difficult economic climate and the ongoing need to tackle the company’s cost base to remain competitive in the challenging environment in which Aer Lingus operates” to review the directors’ fees.

In response to O’Neill’s letter, Barrington said: “I wholeheartedly agree with the suggestion that a review be carried out of the level of directors’ fees, having regard for current norms for companies with a similar scale as Aer Lingus and having regard to the responsibilities of directors of a publicly listed company.

“In this regard, I am pleased to advise that such a review is already under way within the context of our overall cost-reduction programme, which we intend to announce shortly.”

This latest reduction in fees will be in addition to a 20% cut in payments that Aer Lingus directors agreed to take in February.

As a result of that reduction, Barrington’s fee went from €175,000 to €140,000.

Payments made to non-executive directors were reduced to €36,000 annually from €45,000.