Sunday 4 December 2016

Aer Lingus to report loss for first quarter of year

Published 29/04/2015 | 02:30

Aer Lingus
Aer Lingus

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.

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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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