Aer Lingus foresees bumpy 2011 despite rosy figures
Friday, 28 Feb, 2011
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Aer Lingus has predicted a challenging financial year in 2011 despite returning to profit in its 2010 balance sheet.
The airline implemented a raft of cost-cutting measures for 2010, which meant it posted an operating profit of €57.6 million, an improvement of €139 million, but its chief executive Christoph Mueller said current fuel prices would cause 2011 profit to be “significantly below 2010”.
He said: “We expect significant challenges in 2011, with trading for the year likely to be impacted by fuel price inflation and increased airport charges in combination with difficult conditions in our home market.
“We do not expect that improvements in yield performance and ongoing cost savings can offset these increased costs. If current fuel prices persist, we expect that 2011 operating profit will be significantly below that of 2010.”
The impact of the ash cloud and poor weather conditions meant Dublin Airport passengers declined by 10% yet still the carrier managed to return to profitability. The 2010 average yield per passenger was up 12% and ancillary revenue per passenger of €17.67 was up 5.5% compared to 2009.
Mueller added: “Aer Lingus generated a positive operating result of €57.6 million in 2010. This result represents a swing in profitability of €138.6 million compared to 2009 and has been achieved despite adverse economic conditions in our core Irish market and significant operational challenges caused by volcanic ash and weather related disruptions in 2010.”
by Dinah Hatch
Dinah
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