Saturday 22 September 2018

CityJet recorded pre-tax loss of €30.2m in 2016 following aircraft acquisitions, start-up costs and 'financing requirements'

Cityjet (stock image)
Cityjet (stock image)
John Mulligan

John Mulligan

Aircraft acquisitions, start-up costs and “exceptional financing requirements” propelled Dublin-based airline CityJet to a pre-tax loss of €30.2m last year, according to the carrier this evening.

Its loss from operations totalled €1.8m.

The exceptional costs included €13.1m of foreign exchange losses on aircraft financing. An additional €8.4m of exceptional costs related to aircraft acquisitions, type conversion training and accounting policy adjustments.

Revenue at the airline rose to €198.2m last year from €165.1m in 2015. Turnover in the current year is expected to hit €276m.

The ‘Sunday Independent’ revealed the revenue figures earlier this year.

“Significant progress has been made in 2016 in restructuring CityJet from being predominantly a scheduled carrier to being predominantly a wet lease operator, albeit with a significant scheduled presence,” said founder and executive chairman Pat Byrne.

Mr Byrne said CityJet will continue to expand its wet-lease business for  other airlines, and that the 2017 accounts would reflect a full year of operations from its acquisition of Finnish airlines Blue 1, and of Denmark’s Cimber.

Among the new aircraft acquisitions in 2016 were eight new Bombardier CRJ900 aircraft, which were delivered between March and June 2016, and options on an additional six aircraft. The company also leased three SSJ100 Superjets with options on additional aircraft. Fleet growth has continued through 2017, with CityJet receiving 14 additional aircraft this year, bringing the fleet up to 43 passenger jets.

That makes Cityjet the second largest independently-owned European regional airline.

“Set against the backdrop of difficult trading conditions and a major growth trajectory, we are pleased with the significant progress made during 2016 and, while further integration and restructuring is taking place this year, we are confident a profitable future lies ahead,” said Mr Byrne.

CityJet operates the majority of its aircraft on services on behalf of other airlines, with 34 jets in service between SAS, Brussels Airlines, Air France and KLM.

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