Thursday 8 December 2016

Aer Lingus contributes €42m to IAG operating profit in first half

Published 29/07/2016 | 08:07

Aer Lingus aircraft. Photo: PA
Aer Lingus aircraft. Photo: PA

Aer Lingus put €42m towards IAG's operating profit of €710m in the first half of the year.

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IAG boss Willie Walsh told RTE's Morning Ireland that the formerly State-owned airline was doing "very well". The operating profit figure - before exceptional items were included -  was a 27pc rise.

But IAG said it expected low double digit percentage growth for the year as a whole - a good deal lower than previous forecasts.

"We have continued to experience a weaker trading environment in our UK point-of-sale business, which represents around one third of total revenue. On top of this, continued pound sterling weakness would reduce pound sterling profits when translated into euros in what is traditionally the most profitable part of the year," Mr Walsh said.

"In addition, like other European airlines, our operations around Europe have recently suffered from significant weather and Air Traffic Control strike disruption, resulting in over a thousand flights having to be cancelled. We expect at least €80m disruption costs to be booked in the second half of the year as a result, with the additional risk of revenue dilution," he added.

Other airlines in the IAG stable include Aer Lingus.

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