Wednesday 26 September 2018

CityJet suffers €30.2m loss in 2016 due to exceptional costs

Pat Byrne, CityJet chairman and founder
Pat Byrne, CityJet chairman and founder
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 airline.

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

Its loss from operations totalled €1.8m.

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.

"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.

He told the Irish Independent that reported losses in the current financial year would be significantly less, and that CityJet should be turning a profit by 2019.

He 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. The company also leased three SSJ100 Superjets.

CityJet received 14 more aircraft this year, bringing the fleet up to 43 passenger jets.

It makes Cityjet the second largest independently-owned European regional airline. Mr Byrne said CityJet expects to extend and expand existing wet lease contracts this year.

Irish Independent

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