Aer Lingus to cut long-haul capacity

LONDON (Reuters) - Irish airline Aer Lingus (AERL.I) said on Friday it will cut seat capacity on its winter long-haul services by a quarter compared to 2008 in response to low demand and significant losses in the first quarter.

The company will cut direct services between Dublin to Washington and San Francisco as well as flights between Shannon and Chicago for the winter period.

The statement follows press reports on Friday that the airline would drop some U.S. routes in a bid to cut costs.

"We are also taking action to effectively manage capacity; adding short haul frequency and routes at Shannon and Gatwick and reducing capacity in Dublin and Belfast," Chairman, Colm Barrington said in a statement.

The airline added the suspended services will be recommenced subject to review, whilst long haul average fares fell by 19 percent in the first quarter.

(Reporting by Lorraine Turner)