News

Aer Lingus Reports Strong Performance in 1Q12

Aer Lingus Reports Strong Performance in 1Q12

Aer Lingus today announced its results for the period from 1st January to 31st March 2012, the first quarter of its financial year. The company recorded a strong performance with revenues and operating loss significantly better than 1Q11. Aer Lingus reports a 32.8% improvement in its operating result, with losses of €36.1 million compared to €53.7 million in 1Q11. The quarterly result was driven primarily by strong revenue performance with yield per passenger up 8.4% while passenger numbers increased by 6.6%. Total Q1 revenue increased by 15.4%.

Aer Lingus

The increase in operating costs was held to 5.9% despite substantial increases in fuel costs and airport charges that rose by 31.4% and 7.8%, respectively. The ‘Greenfield’ cost reduction programme remains on track.

Long-haul performance was particularly strong, with Q1 passenger volumes and yield up 12.1% and 11.2%, respectively. Retail revenue per passenger increased by 8.5%.

Aer Lingus remains financially strong with gross cash balances of €1,002.0 million as at 31st March 2012.

Chief Executive Christoph Mueller said: “Aer Lingus experienced an encouraging start to 2012 and the Group’s Q1 2012 operating loss of €36.1 million represents a 32.8 % improvement over Q1 2011. This result is mainly due to strong yield growth, particularly on long haul. We have deliberately compensated for the continuing decline in private Irish consumer demand with an increased focus on time sensitive routes, which carry a higher proportion of business travellers.

“We now share the more upbeat view on industry trends expressed in IATA’s April 2012 airline business confidence survey and, if current trends continue, Aer Lingus’s operating profit for 2012 should match that achieved in 2011. However, the performance of certain short-haul routes is weaker than expected and our business continues to be subject to inflationary cost pressures.

“We remain focused on our cost base and continue to explore measures to protect the Group’s profitability for the remainder of 2012 and beyond.”

Click to add a comment

Leave a Reply

Your email address will not be published.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

News

NEIL STEEDMAN has been a trade journalist, editor and proofreader for 53 years, and ITTN's News & Features Editor for 43 years. His travel blog is at www.thetravelbuddhist.com.

More in News

State Aid: European Commission Approves Irish ‘Umbrella’ Scheme to Aid Tourism Sector

Fionn DavenportMarch 8, 2021

ECTAA Calls For Accelerated Investigations into Airline Cancellation Practices

Fionn DavenportMarch 8, 2021

Royal Caribbean: Optimistic About 2021, but 2022 Will Be a Bonanza

Fionn DavenportMarch 8, 2021

ITTN Photographer of the Year 2021 – Send in Your Pics!

Fionn DavenportMarch 8, 2021

Stena Line to Double Female Management by 2022

Fionn DavenportMarch 8, 2021

Celebrity Cruises Celebrates International Women’s Day With All-Female Crew

Michael FloodMarch 8, 2021

Destination Canaries: Reactivating the Economy of the Islands

Fionn DavenportMarch 8, 2021

Virgin Atlantic to Rename Two Planes After ‘Iconic’ Women

Fionn DavenportMarch 8, 2021

Grace Period Before Mandatory Quarantine Goes Into Effect

Fionn DavenportMarch 8, 2021

Copyright © 2021 ittn