Aer Lingus trading picks up in Q3

AER Lingus says trading picked up in the third quarter and that it is likely to generate a full-year operating profit towards the top end of expectations.

However, it has warned of a potential slowdown in business next year.

In a trading statement, for the three months to the end of last month, the airline said September in particular had been stronger than anticipated; primarily due to an improvement in yields.

Forward revenues suggest October and November will also be ahead of expectations,. it said. However, the airline added that going into 2011, trading is likely to become tougher.

“At this time, forward revenues indicate that December — and the first quarter of 2011 — appear much weaker than anticipated. However, the group isn’t yet able to determine whether this reflects the recent trend towards later bookings or an underlying softness in demand,” yesterday’s statement said.

Regarding 2011, Aer Lingus said it shares international concern that “the durability of the current aviation sector upturn is in increasing doubt in Europe and north America and that growth will slow in 2011”.

The airline will publish a more detailed interim management statement — covering the second half of this year — early next month.

Meanwhile, Ryanair has used the British Court of Appeal’s decision to dismiss an appeal by British airport owner BAA against the break-up of its monopoly as the backdrop for a fresh call for the Government here to sanction a similar break-up of the DAA’s control of Dublin, Cork and Shannon airports.

Ryanair has also halved its routes out of Marseilles airport and closed its base there due to a dispute relating to tax qualifications and social insurance contributions of its Irish staff based at the airport.