Aer Lingus will be announcing its second quarter and first half 2011 results to market analysts this morning, including a 2Q11 operating profit of €25.9 million – but a 1H11 operating loss of €27.8 million.
The highlights will be as follows:
Q2 2011 Highlights
• Significant year-on-year improvement in operating profit to €25.9m (Q2 2010 operating profit of €18.8m)
• Profit before tax of €42.2m compared to profit before tax of €15.4m in Q2 2010
• Total passenger numbers increased by 8.3% in the quarter, with short haul up 8.6% and long haul up 4.8%
• Positive yield performance continues to contribute to year-on-year revenue growth. Yield per passenger was up 6.6% compared to Q2 2010
• Comparative quarterly performance was helped by the absence of airspace closures that impacted on 2010 results
H1 2011 Highlights
• Operating loss of €27.8m compared to a loss of €19.0m in H1 2010
• Loss before tax of €14.2m compared to loss before tax of €20.8m in H1 2010
• Strong recovery in Q2 following disruptions caused by the IMPACT cabin crew dispute in Q1
• H1 revenue up 5.8% compared to H1 2010
• Continued cost discipline reflected in a 5.9% year-on-year reduction in staff costs
• Free cash flow of €16m after settlement with the Irish Revenue (H1 2010: cashflow of €56m)
• Strong forward booking profile suggests that 2011 operating profit will be better than originally anticipated
• Balance sheet remains strong including gross cash of €919.4m as at 30 June 2011
Chief Executive Christoph Muller commented: “Aer Lingus experienced a strong second quarter, reporting an operating profit of €25.9m, which was significantly ahead of prior year. This result was underpinned by the continuing positive impact of our capacity management strategy, stabilised passenger numbers, strong yield growth and the absence of airspace closures in Northern Europe that occurred in 2010. However, first half losses were higher than last year mainly due to the IMPACT cabin crew dispute at the start of the year.
“Although economic conditions in Ireland remain challenging, we are pleased with the booking profile for the rest of the year and we are positive about our trading prospects for the remainder of 2011. We expect revenue growth in the second half to be broadly similar to that of the first six months. As a result, we are more positive about the profitability of the business in 2011 than we were at the start of the year.
“Our ability to generate returns in the current environment reflects the changes we have made to our business model over the past two years including a demand led network strategy, focus on revenue per seat and implementation of the Greenfield cost reduction programme. We continue to believe that Aer Lingus is a valuable business. We have a strong balance sheet with high levels of cash, a modern fleet and a high quality product. These combine with our relatively low cost base to create profitable short and long haul networks.”