EMBATTLED airline Aer Lingus today reported a further slide in revenues, but said performance was "stabilising" after efforts to cut aircraft and capacity.

The Dublin-based carrier, which last month unveiled plans to cut a fifth of its workforce, announced it was stripping out another plane from its long-haul service, to trim winter and summer 2010 capacity further.

Revenues fell 9.7% year on year in the third quarter, although the number of passengers rose 7% and the group said it was filling its planes better, with the load factor up across long and short haul flights.