Aer Lingus reports 1Q11 financial results

Aer Lingus Group has issued an unaudited interim management statement for the first quarter (1Q11) of the Group’s financial year, that quarter ending on 31 March 2011 with an operating loss.

The airline reports a positive yield performance in 1Q11, with yield per passenger up 9.0% compared with 1Q10. However, that did not prevent the carrier recording an operating loss before exceptional items of €53.7 million – the loss increasing by 41.7% compared to 1Q10.

Also contributing a negatively effect on 1Q11 performance were the IMPACT cabin crew dispute in January and February, the timing of the Easter holiday period and poor performance of some Irish originating leisure routes.

Despite a difficult start to the year, the airline notes, the operating result is line with expectations and management still expects that Aer Lingus will generate an operating profit before exceptional items for 2011, but now at a significantly lower level than in 2010.

“As anticipated, we experienced a challenging start to 2011,” remarked Christoph Mueller, Aer Lingus’s CEO. “In light of the continued weakness of the Irish economy and pressures on non-controllable costs, we are assessing whether the Greenfield cost reduction programme is sufficient to protect profitability for the future or whether further measures are required. We will update the market in due course.”

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