AER LINGUS said yesterday it now expects to at least break even on its operations in 2010 after a stronger-than-expected performance from its long-haul flights to the United States in the first half of the year, increases in average fares and savings in staff costs.
“Recent yield performance and long-haul load factors have exceeded our expectations and the forward booking profile suggests this strength should continue for at least the third quarter,” the airline said yesterday in an unplanned trading update to the stock market. As a result, having regard to the committed staff productivity savings and provided there are no significant disruptions to operations such as were caused by the Icelandic volcano, Aer Lingus now expects that its 2010 operating result (before exceptional items) should be no worse than break even.”
Joe Gill, an aviation analyst with Bloxham Stockbrokers, said he now expects Aer Lingus to post an operating profit of “at least” €20 million for 2010.
The airline said it traded ahead of the comparable period of last year in the first six months of 2010. Trading in June was “stronger than expected due to higher yields and long-haul load factors than we had anticipated”.
For the first six months, average long-haul fares increased by 17.4 per cent, with an improved performance from its business class cabin.
