Aer Lingus is set to scale back U.S.-Ireland flightsSteve Parsons/PA

Aer Lingus is expected to announce major changes on its Atlantic routes.

An annoucement is expected this week and there is mounting speculation that the airline will scale back its New York Dublin service to one flight a night.

It is also expected to announce that it will cease direct Shannon service for the winter.

The airline is also expected to introduce a new $1,200 one-way Premier ticket to try and shore up revenues.

Meanwhile, there have also been reports that Ryanair boss Michael O'Leary - who ran a high-profile to back the Lisbon treaty - did so to help his chances of a new bid for Aer Lingus.