Aer Lingus plans to cut all flights from Shannon airport to New York and Chicago from its winter schedule in a bid to stem its mounting losses.

A spokeswoman for Aer Lingus declined to comment but it is understood that controversial decision will be announced by the airline at about lunchtime today, along with plans to cut services from Dublin to Washington and San Francisco.

Aer Lingus said last week it was facing the most difficult period in its 73 years, declined to give earnings guidance and was unable to say when a recovery plan might be ready.

 The decision to downgrade Shannon this winter is likely to provoke considerable anger among lobby groups in the west of Ireland, who will be fearful of the potential negative impact on investment by US companies in the region if direct links between the two are diminished.

The former state airline carried 90,000 passengers in May on its long-haul routes, all to and from the U.S. 21 percent less than a year earlier, with the average transatlantic flight filled to just two-thirds capacity.

The Irish Times said Aer Lingus would cut flights from Shannon in the west of Ireland to New York and Chicago in its winter schedule to stem mounting losses, also slashing routes from Dublin to Washington and San Francisco.

Aer Lingus, which has fended off two takover attempts by Irish rival Ryanair, will ask staff to take unpaid leave because of the route cuts, the paper said. 

Mr Barrington told shareholders at its annual general meeting last week that one in four flights between the US and Ireland was effectively flying empty. In addition, the average fare that the airline has achieved for its transatlantic services has declined sharply. Aer Lingus has had an almost continuous sale this year on long-haul flights.

In May, Aer Lingus said it was pulling six routes and three aircraft from its base in Belfast for the winter months. It is also planning to mothball one aircraft at Dublin airport.

The airline has been hit by declining consumer demand and a weak dollar affecting tourist numbers coming to Ireland from the US.