Aer Lingus records €205m profit despite pilot strike

Airline calls on government to address passenger cap issue

Aer Lingus served 11 million passengers last year, an almost 3% increase on the previous year. Picture: Larry Cummins

Aer Lingus recorded an operating profit of €205m for 2024, a year impacted by pilot industrial action, a passenger cap and increased competition on transatlantic routes.

Publishing its annual results, the airline, part of the IAG Group, said strong performance in the final quarter delivered an operating profit of €56.7m, a significant improvement on the same period in 2023.

Aer Lingus served 11 million passengers last year, an almost 3% increase on the previous year, adding new transatlantic routes to Denver, Minneapolis St Paul and Las Vegas. The airline said it now has the fourth largest number of North American destinations among European companies. 

“These results, and in particular the positive performance in quarter four 2024 demonstrate underlying momentum within the business," chief executive Lynne Embleton said. 

"With additional A321 XLRs joining our fleet, Aer Lingus has a compelling growth ambition that will benefit the airline, our customers, our employees and the economy. We remain focused on continually improving our efficiency and productivity in order to further invest in growth, enhanced customer experience and sustainability. 

"We welcome the clear commitment in the programme for government to address the passenger cap issue — it is critical that the Government urgently implements a solution that gives the longer-term certainty that is needed.”

Late last year, the first two of six A321 XLRs joined the fleet, enabling route expansion. The airline also used an increased supply of sustainable aviation fuel (SAF), 5,595 tonnes in 2024 compared to 750 tonnes in 2023, and has ambition to use 10% SAF by 2030.

IAG reported quarterly profit that beat analysts’ estimates on the continuing strength of demand for leisure travel and set plans to buy back €1bn in stock.

The Aer Lingus, British Airways and Iberia owner generated just over €8bn in revenue in the fourth quarter, up 11% from last year and ahead of analysts’ estimates. Adjusted operating profit more than doubled to €1.12bn. The shares advanced as much as 5.2% on Friday, the most in almost four months.

The results cap a year of strong performance at the airline group. Chief executive Luis Gallego has added routes that serve the lucrative transatlantic market and used extra cash flow to cut back on debt built up during the covid-19 pandemic.

Leisure travel robust

Leisure travel remains robust and corporate travel increased throughout the year, though it is not likely to recover to pre-covid levels, chief financial officer Nicholas Cadbury said on a conference call.

“Leisure customers is growing much faster; it’s above the levels it was in 2019 so it’s compensating,” he said, adding demand was particularly strong for premium seats.

The final dividend of 6p per share brings the full annual payout to €435m. Along with the buyback, the measures reflect confidence in the outlook, the company said, adding it would continue returning capital to shareholders.

IAG, now based in Spain, has expressed interest in acquiring Portugal’s flagship carrier, TAP, after the purchase of Air Europa fell through last year. TAP could be “very good business” as it opens up markets for IAG such as Brazil and parts of Africa, the chief executive said Friday.

IAG would also reconsider resuming some Asia routes it previously cut once Russian airspace reopens and there is availability of jets, Gallego said.

Access to aircraft remains a challenge, Gallego said. Airbus SE is running 12 months behind schedule on narrow body deliveries, with six months on larger planes. The company does not expect its first delivery of Boeing’s massive 777X — still awaiting certification — until 2027.

Gallego said the company was working with Rolls-Royce to address engine issues that have dented reliability of its fleet of Boeing 787 Dreamliners, forcing British Airways to cut back on some routes.

Before Friday, the stock had gained about 12% this year, after more than doubling in 2024. Deutsche Lufthansa AG and Air-France KLM, which failed to keep up with IAG in 2024, are due to report results next week.