Cityjet posts pre-tax losses of €208.9m

Exceptional and redundancy costs totalling €185m contributed to Dublin- based airline, Cityjet last year recording pre-tax losses of €208.9m.

The airline’s parent Air France KLM is currently in advanced negotiations to sell the airline off to a third party and new accounts for Cityjet Ltd show that the airline recorded revenues of €260.2m in the 12 months to the end of December last.

This represented a 9% increase on the €238m in revenues recorded for a nine-month period to the end of December 2011.

The pre-tax loss last year followed pre-tax losses of €8.86m in 2011.

The figures show operating losses at the airline rose more than three-fold from €6.2m to €21.3m last year with exceptional costs contributing to the losses exceeding €208m.

A note attached to the accounts shows Air France provided €12m to Cityjet since the start of this year “to fund the ongoing operations of the company”.

The report states that a loss of flying activity arose from the airline losing franchise activity on the Zurich to Paris route and wet-leased activity (the provision of jets and crews to other airlines) on the London to Milan-Linate route. The subsequent voluntary redundancy programme resulted in 97 job losses at a cost of €3.2m.

The airline last year carried 2.1m passengers compared to 1.8m for the nine month period in 2011.

The company undertook an impairment assessment of its fleet during the year resulting in a charge of €7.3m. A €175m impairment was also recorded on the firm’s investment in VLM Airlines.


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