Aer Lingus set to deliver €57m profit in 2011

AER LINGUS is on course to deliver an operating profit of €57 million for 2011 as it becomes the most restructured airline in Europe.

This is according to Davy Stockbrokers, which said that given the company’s commitment to its €97m cost reduction programme its era of cash burn will likely end. It forecasts that the airline’s cash position will be unchanged this year while €30m of free cash will be generated next year.

“Looking into 2011, the effects of the cost-cutting measures alone will offer an improved operating result with added upside potential due to the recovery in passenger traffic in continental Europe and the US,” Davy analysts Stephen Furlong and Joshua Goldman said.