Aer Lingus to report loss for first quarter of year
Aer Lingus will highlight continuing pressure on its short-haul business this morning as it reports a loss for the first quarter of the year.
The airline – as with many carriers – makes a loss in the quieter first three months of the year, when capacity is curtailed and fewer people travel.
In the first quarter of 2014, the airline posted a €48.5m loss. But it went on to make a full-year profit of €72m, which was 18pc higher than in 2013.
Analyst Stephen Furlong of Davy Stockbrokers is predicting that Aer Lingus will make a €90.4m operating profit this year.
That will be the result of a €12m loss during the first six months of 2015, and a €102m profit in the second half of the year.
David Holohan, the head of research at Merrion Capital, predicts Aer Lingus will make a €95m profit on the back of €1.6bn in revenue this year.
Aer Lingus, headed by chief executive Stephen Kavanagh, is also likely to reiterate the board’s support for a planned €1.4bn takeover of the airline by British Airways owner IAG.
IAG, headed by Willie Walsh, releases its first-quarter results tomorrow, while Aer Lingus holds its annual general meeting on Friday.
The companies are awaiting a decision by the Government on whether it will sell its 25.1pc stake in Aer Lingus to IAG as part of a takeover deal.