Ryanair might just offer an Irish solution to Aer Lingus’s woes
Together, these factors generated an operating loss of €53.7m, equivalent to €31 per passenger. The carrier reduced capacity by 11% in the same period, as it closed long haul in Shannon and other routes from Gatwick. This helped increase yields by about 9%, which limited losses.
Looking forward, conditions should be better in Q2 and Q3 as the absence of volcano disruption and seasonal summer demand swings the business back into the black. Overall, we now estimate full-year profit will be about €20m, sharply lower then the €58m reported during 2010. An encouraging element is the strong balance sheet, where net cash of about €400m remains, an important resource for the airline and shareholders.
