CityJet predicts profit by 2016 despite €23.1m loss
CityJet will break even next year and be profitable in 2016 after posting a pre-exceptional €23.1m loss last year, according to chief executive Christine Ourmieres.
The Dublin-based airline was sold this year by Air France-KLM to Germany's Intro Aviation.
Speaking to the Irish Independent, Ms Ourmieres insisted that the 2013 accounts - just filed at the Companies Office - only give the historic position of the airline prior to its acquisition.
"This year will be a year of development and restructuring," she said, pointing out that the transition has included closing its London office and amalgamating its team in Dublin.
Revenue at CityJet fell to €220m last year from €260m the year before. Ms Ourmieres, who owns 7.5pc of the airline following its buyout from Air France, said that reflected the change in CityJet's hub operations at Paris Charles de Gaulle airport from franchise to contract flying for Air France.
Adding exceptional items of €15m brought the operating loss to €38.6m last year compared to €209m in 2012, when €175m was written off the value of CityJet's Belgian subsidiary, VLM.
That unit was recently sold. CityJet is being challenged on its busiest route between Dublin and London City Airport with both British Airways and Flybe having started services on the route within the past few weeks.
In response, CityJet increased its capacity on the service by 25pc.
Ms Ourmieres said that CityJet is used to being challenged and that it is currently focusing on upholding its load factor.
Ms Ourmieres added that a decision on fleet renewal wont be made until summer next year. She said such a decision is "complex".
CityJet has also set aside an €18.8m provision for possible liabilities related to a legal challenge by French authorities in how CityJet treated France-based staff as employees subject to Irish labour law.