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.
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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.
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