Irish airline Aer Lingus could cut up to 500 jobs as part of a reorganisation, it says, citing high costs and a challenging economic environment as the sector grapples with surging oil prices mainly due to the US-Iran war, Reuters reports.

The airline, which has already cut senior management roles by a quarter, plans to reduce wider employee costs by about the same level while making network changes to remove lower margin flying, it has said in a statement.

That would lower overall flying by six per cent, including some long-haul and short-haul routes, it says, adding that it is also focused on reducing supplier costs.