Aer Lingus has informed staff at Dublin Airport and beyond that cost-cutting measures such as pay freezes and job losses may have to be introduced.
The news comes after union staff voted to reject a restructuring deal put forward by Aer Lingus.
Passenger numbers making their way through Dublin Airport are still far below pre-Covid-19 levels with passenger numbers in August down 63%.
Under the proposed restructuring deal put before Aer Lingus staff, there would be no pay increases until 2025 at the earliest while layoffs will "continue well into 2022 and indeed may increase in number".
The voluntary severance program which the airline had been running is also set to close and "no further severance offers will be made to individuals under the scheme".
During the height of the pandemic, staff had been working reduced hours on reduced pay, however, they were set to have their wages returned to 80% of normal levels.
Dublin Live has contacted Aer Lingus for comment.
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