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Cityjet losses hit €55m last year despite 21pc rise in revenues

Gordon Deegan

Published 11/01/2012 | 05:00

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Exceptional costs totalling €26.6m last year contributed to pre-tax losses at Dublin-based airline Cityjet increasing by 7pc to €54.8m.

According to accounts just filed by Cityjet at the Companies Office, the airline's revenues increased by 21pc from €258.9m to €316m in the 12 months to the end of March last.

The pre-tax loss of €54.8m follows the company recording a pre-tax loss of €51.5m in 2010 and a loss of €63.9m in 2009.

During the 2011 fiscal year, Cityjet carried over 2.3 million passengers, up 10.5pc on the previous year.

This contributed to the airline's operating losses decreasing from €45.7m in 2010 to €25.8m last year.

The directors' report points out that the airline's pre-tax loss takes account of exceptional items totalling €26.6m, made up of a €8.9m write-down in aircraft earmarked for disposal; a €15.4m write-down in a subsidiary investment, VLM Airlines; and a €2.3m provision for the early termination of an aircraft lease agreement.

New plan

The directors' report states that "the company implemented a new business plan during the year with focus on optimising revenues and generating greater efficiencies in the use of its crew and aircraft.

"Arising from this plan, the company reduced its operating fleet of aircraft and made four Avro RJ aircraft available for sale."

At the end of the year, the airline operated 22 Avro RJ and 14 Fokker 50 aircraft in conjunction with its Belgian subsidiary company, VLM Airlines.

The loss last year also took account of depreciation costs totalling €18.8m while it also spent €8.3m on aircraft leases.

The Swords-based Cityjet is wholly owned by Aer France-KLM and is the largest airline operating out of London City airport where it flies to 17 European destinations, while it operates 14 services out of Dublin.

The figures show that the numbers employed by the airline last year declined from 679 to 631 with staff costs increasing from €36.5m to €36.8m.

The airline increased its revenues in Ireland last year from €24.4m to €29.3m with revenues increasing in 'rest of Europe' from €162.4m to €203.1m while UK revenues increased from €72m to €83.4m.

The airline's cost of sales increased last year from €264.6m to €297m with administrative expenses increasing from €8.2m to €8.4m.

The figures show that Cityjet owed €196.4m to its parent Air France at year end.

Irish Independent

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