Business Irish

Thursday 13 December 2018

Aer Lingus paid out €200m dividend for 2017 as profit hit record

Accounts for Aer Lingus also show that its directors, including outgoing CEO Stephen Kavanagh, pictured, were paid a total of €4.3m last year, up from €3.4m in 2016
Accounts for Aer Lingus also show that its directors, including outgoing CEO Stephen Kavanagh, pictured, were paid a total of €4.3m last year, up from €3.4m in 2016
John Mulligan

John Mulligan

Aer Lingus paid a €200m dividend to its UK-based holding firm last year as it generated record profits in 2017.

It's the first time a dividend has been paid out by the airline since it was acquired by IAG in 2015.

IAG directly received a €125m dividend from Aer Lingus's UK-based holding company last year, newly-filed accounts for the entities show.

The UK holding company said that it used the €200m dividend it received from Aer Lingus to service euro-denominated borrowings. That Aer Lingus holding company then paid the €125m dividend to IAG.

Aer Lingus made a pre-tax profit of €270m in 2017 compared to €226m in 2016, on passenger revenue of just under €1.8bn, newly-filed accounts in Ireland for the business confirm.

IAG has invested heavily in Aer Lingus since it bought it for €1.36bn.

Aer Lingus recently announced plans to expand its transatlantic fleet from 17 to 30 aircraft within the next five years.

Accounts for Aer Lingus also show that its directors, including outgoing CEO Stephen Kavanagh, inset, were paid a total of €4.3m last year, up from €3.4m in 2016.

The beneficiaries of those payments are Mr Kavanagh, Aer Lingus chief financial officer Rachel Izzard, and chief operating officer Mike Rutter.

IAG, whose chief executive is former Aer Lingus CEO Willie Walsh, also owns British Airways, Iberia, Vueling and Level.

The accounts filed for Aer Lingus also show that €5.7m in compensation was paid to key management at the airline last year.

Irish Independent

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