Brighter outlook for Aer Lingus
Better than expected load factors on its US flights has helped improve Aer Lingus’ financial results.
In an unscheduled trading update to the stock market last night, the airline said it now expects to at least break even in 2010 thanks to the performance of its long-haul services, a rise in average fares and savings in staff costs.
For the first six months of 2010, average long-haul fares increased by 17.4% over the previous year, helped by improved business class performance.
Long-haul load factor increased by 5.9 points and long-haul capacity was reduced by 31.6%.
Average short-haul fare per passenger increased by 9.0% in the first half, partly due to changed booking patterns.
Short-haul load factor declined by 1.3 points and short-haul capacity was 5.3% down.
“Recent yield performance and long-haul load factors have exceeded our expectations and the forward booking profile suggests this strength should continue for at least the third quarter,†the airline said.
“As a result, having regard to the committed staff productivity savings and provided there are no significant disruptions to operations such as were caused by the Icelandic volcano, Aer Lingus now expects that its 2010 operating result (before exceptional items) should be no worse than break even.â€
But it said it was too early to provide guidance for 2011 and that further improvements will be “very dependent on the overall economic environmentâ€.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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