Profits at ASL Aviation fall to €7.9m
Underlying profits at Dublin-based ASL Aviation dipped 5pc last year to €7.9m, despite revenue soaring to €738m from €377m as it completed the acquisition of operations including TNT Airways.
When exceptional items are included, pre-tax profit slumped 52pc.
ASL operates passenger and freight services and customers include Aer Lingus. It is a joint venture between Belgian company Compagnie Maritime Belge and a unit of investment firm Degroof Petercam.
ASL directors said the company had delivered a "reasonable" set of results given the "challenging trading conditions" in the sector.
They acknowledged that while there had been a 51pc fall in pre-tax profits, the decline was primarily a result of one-off adjustments in the period, including €5.2m in impairment costs, €800,000 in acquisition-related costs, and €1.6m in restructuring costs.
ASL, whose CEO is Hugh Flynn, bought the airline operations of TNT Express, including TNT Airways in Belgium and Pan Air Lineas Aereas in Spain, last year.
ASL paid €53.5m for the businesses and noted that it was satisfied with their integration into the group and their performance to date.
US delivery giant FedEx acquired TNT for $4.8bn last year.
ASL, which operates around the world, noted in its accounts that the industry continues to be "extremely cost sensitive" and that this has coincided with lacklustre volume growth.
"While volume appears to be showing some positive signs in the short term, the pricing pressures are expected to continue, which will continue to negatively impact margin and the viability of certain operations," the company added.