Aer Lingus revenue grows 5.9%

AER LINGUS expects to meet full-year targets after performing strongly in the key summer months and achieving a pre-exceptional operating profit of €94.6 million in the third quarter.

Revenue for the quarter increased by 5.9%, on a year-on-year basis.

The figures also bring to €66.8m, pre-exceptional operating profit for the first nine months of 2011. The third-quarter profit figure represented a year-on-year increase of 19.4%.

Airline chief executive, Christoph Müller said the performance has been pleasing given falling consumer demand, high airport and fuel costs and internal cabin crew disputes.

“Despite these challenges, we’re satisfied with operating profit for the first nine months of the year. Based on this result, and current trading, the group now expects to report a full-year 2011 operating result — before exceptional items — at the upper end of the current range of market expectations,” he added.

That range is for profits of between €30m and €42m. The third-quarter figures were also ahead of what was, itself, a solid second quarter performance.

Yesterday’s interim management statement also showed that Aer Lingus’s operating expenses, for the nine months up to the end of September, increased by 5.5% year-on-year. This was mainly on the back of increased airport charges and business improvement costs.

On a revenue basis, short-haul passenger sales are up 8% to €615.8m, while long-haul passenger revenues were ahead 3.8%, at €219.5m. There were slight load factor (the amount of seats filled, as opposed to sold) declines in short and long-haul routes.

Last month, the Abu Dhabi-based Etihad Airways became linked with a potential move for the Government’s 25% stake in Aer Lingus. Earlier this week, Ryanair — Aer Lingus’s chief shareholder — made a second call for an egm of Aer Lingus investors to debate a Deloitte/McCann Fitzgerald report into Aer Lingus’ €30m ‘leave and rehire’ revenue penalty. Aer Lingus chairman, Colm Barrington, recently told Ryanair he is open to having constructive discussions over Ryanair disposing of its 29.8% stake.

Meanwhile, Aer Lingus is due to hold a separate egm today seeking approval for the restructuring of its balance sheet to allow for the availability of more funds.0