"The airline was already preparing reductions as a consequence of the worldwide economic slowdown, but this was greatly worsened by the tragic events in the United States last week," Aer Lingus said in a statement.

     The national carrier said it planned to cut its costs by "at least" 25 percent, but could not give details on how this would impact on its 7,000-strong workforce.

     The move was a bid to minimise the financial impact of the turmoil in the airline industry resulting from last week's events, it said. Airlines across the world have announced sharp capacity reductions and job cut plans following the attacks.

     While retaining core transatlantic services to John F. Kennedy airport in New York, and to Boston, Chicago, and Los Angeles, Aer Lingus plans to terminate operations between Ireland and Washington, and Newark airport near New York.

     The Dublin-Stockholm route will also be dropped and frequency cut back across a number of services including Dublin to London City, Glasgow, and Paris, the airline said.

     Seven aircraft will be taken out of the fleet. "The impacts of the events of last week necessitate an immediate and sustained change of apporach on route structures and their cost implications in the context of the significantly reduced revenues which will be available in a greatly suppressed marketplace," a spokesman said.

     He added that further actions could be necessary up ahead.

     Aer Lingus has already been hit this year by industrial unrest -- which grounded its fleet on five occasions -- and by lost business due to the foot and mouth disease crisis, which brought Ireland to a virtual standstill.