News

Aer Lingus Q3 Operating Profit up 4.4% to €95m

Aer Lingus Q3 Operating Profit up 4.4% to €95m

Aer Lingus has  announced its results for the period 1st July to 30th September 2013, representing the third quarter (Q3) of the company’s 2013 financial year.

Christoph Mueller

Christoph Mueller

The company delivered a strong trading performance recording a Q3 operating profit of €94.9 million, up 4.4% on the previous year despite challenging conditions.

Total Aer Lingus revenue for the third quarter was up 1.2% to €466.3 million, while operating costs were effectively managed, increasing by only 0.4% to €371.4 million. The operating margin was 20.4%, an increase of 0.7 percentage points.

Over the three months, 2.913 million passengers were carried on short-haul and long-haul routes, down 0.9% on the same period in 2012. Long-haul performed particularly strongly with a 15.8% increase in passenger numbers and a 0.4 percentage point increase in load factor to 91.7%.

Short-haul passenger volumes were negatively affected by the good Irish summer weather, dropping 2.8% to 2.568 million, while the load factor dropped 1.7 percentage points to 82.0%.

Aer Lingus’s gross cash position at 30th September 2013 was €933.2 million, reflecting the airline’s continued balance sheet strength. The company expects that the full year operating profit will be around €60 million.

Christoph Mueller, Chief Executive, said: “Aer Lingus has delivered an operating profit of €94.9 million for Q3 2013, which is 4.4% ahead of prior year despite challenging conditions.

“As stated in our trading update on 13th September, good weather conditions and strong price competition have hurt our short-haul performance. However long-haul revenue growth was impressive and the market has absorbed the extra capacity we added on the North Atlantic this summer.

“We continued our tight cost management with operating costs increasing in the quarter by just 0.4% despite a 2.9% increase in capacity deployed and the costs of operating our wet lease business. However, I must again express my disappointment that the ongoing process to resolve pension issues continues to have a negative impact on our ability to deliver efficiencies and cost saving measures, particularly in respect of our recent voluntary severance programme.

“We do not expect any improvement in the short-haul environment for the rest of 2013, which remains characterised by heavily discounted fare offerings across Europe. The 2013 outlook on long-haul remains positive with the exception of some weakness expected in November, which was previously communicated. We maintain our current guidance for full year 2013 operating profit, before net exceptional items, to be around €60 million.”

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Michael Flood is the Editor of Ireland's leading travel industry publication, Irish Travel Trade News. With more than 35 years experience, he has accumulated an in-depth knowledge of the airline industry and the travel and tourism world.

More in News

Travellers’ Protection Fund: To Be or Not To Be?

Neil SteedmanJanuary 23, 2019

€155m European Investment Bank Support for Irish Continental Group

Michael FloodJanuary 23, 2019

Cork Airport Appoints New Head of Aviation Business Development

Neil SteedmanJanuary 23, 2019

Helen and Joanna Win Boyzone Tickets with Turkish Airlines

Neil SteedmanJanuary 23, 2019

Hainan Airlines Launches Non-Stop Dublin-Shenzhen Route

Neil SteedmanJanuary 23, 2019

Bangkok Airways Welcomes 40th Aircraft to the Fleet

Michael FloodJanuary 22, 2019

Irish Cruise Market Grew 8.8% in January-September Period – CLIA

Neil SteedmanJanuary 22, 2019

WestJet Hosts the Trade at Abbey Theatre

Ian BloomfieldJanuary 22, 2019

Aer Lingus Unveils Brand Refresh with A330-300 in New Livery

Neil SteedmanJanuary 22, 2019

Copyright © 2016 Belgrave Group Limited, C4 Nutgrove Office Park, Nutgrove Avenue, Rathfarnham, Dublin 14, Ireland