Aer Lingus dives on fourth quarter loss
Aer Lingus, the part state-owned air carrier, saw profits in 2011 hit by high fuel prices, but passenger numbers rose through the year.
Aer Lingus, the part state-owned air carrier, saw profits in 2011 hit by high fuel prices, but passenger numbers rose through the year.
Operating profit, before exceptional items, was €49.1 million, a drop of 6.4% against 2010. A particular concern for the company will be figures for the final quarter which showed an operating loss of €17.6m.
Total revenues for the year were €1.288bn, up 6% on the prior year. Costs rose 6.5% to €1.239bn while the group flew 9.5m passengers in 2011, up 1.8% on 2010.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Commenting on the results Christoph Mueller, Aer Lingus' Chief Executive said: "While the 2011 operating result was lower than 2010, it was nonetheless significantly ahead of our expectations at the start of 2011 and was achieved against a difficult backdrop of non-controllable fuel price inflation, increased airport charges and challenging demand conditions in our primary markets."
The shares dropped 9.5% to hit 85p by 13:56. That's the minimum price at which the Irish Government is thought to be prepared to sell its 25% stake in the firm. Aer Lingus would be keen for the sale to go ahead because it would increase liquidity in its stock, currently restricted by the big holdings of the Government and arch rival Ryanair.
BS
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Best funds to add to your ISA or SIPP before the Budget
With Labour expected to increase taxes, ISAs and SIPPs could be a great way to protect yourself from any CGT hikes. We look at the best funds to buy now
By Katie Williams Published
-
Starling Bank slapped with £29 million fine over ‘shockingly lax’ financial crime controls
The Financial Conduct Authority has fined Starling Bank £29 million over failings related to financial crime and its financial sanctions screenings
By Kalpana Fitzpatrick Published