Friday 24 March 2017

Aer Lingus to report loss for first quarter of year

Aer Lingus
Aer Lingus
John Mulligan

John Mulligan

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.

Watch: TRAVEL TV: First look inside the new Aer Lingus Business Class

Irish Independent

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