Aer Lingus posted pre-tax profits of €84.4 million last year, up from €27.2 million in 2010, according to annual results published this morning.
Revenue was up 6 per cent at €1.29 billion, up from €1.22 billion.
Operating profit at the airline was €49.1 million compared to an operating profit of €52.5 million in 2010, though the company noted that the operating result was “better than anticipated” at the start of 2011, primarily due to stronger yields.
Overall, the results were in line with estimates. The airline forecast that while profits in 2012 would be below 2011 levels, the airline would remain significantly profitable.
Aer Lingus had a difficult fourth quarter, with operating loss before exceptional items increasing to €17.6 million, compared to an operating loss of €7.7 million for the fourth quarter of 2010.
Chief executive Christoph Mueller said the results demonstrate the success of the changes that have been made to the business over the past two years.
“While the 2011 operating result was lower than that reported for 2010, it was nonetheless significantly ahead of our expectations at the start of 2011 and was achieved against a difficult backdrop of non-controllable fuel price inflation, increased airport charges and challenging demand conditions in our primary markets," he said.
Describing 2011 as a difficult year for the airline industry, Aer Lingus said that price inflation was a notable feature of 2011 with the average jet fuel spot price increasing by 40.2 per cent on a year-on-year basis linked to political changes in the Middle East.
It said it expects to be exposed to higher non-controllable costs in 2012, particularly elevated fuel costs.
“While the group continues to put in place hedging protection, the 2012 fuel bill is likely to be significantly higher than in 2011 as the cost of protection adjusts to revised market expectations about the future trajectory of fuel prices.”
Aer Lingus was trading at €0.94 this morning. The Government indicated last week that it plans to sell its 25 per cent shareholding in the company.
On RTÉ Radio this morning, Mr Mueller said Aer Lingus share prices have risen by 60 per cent in recent months to just under €1, which he maintained the Government previously earmarked as the minimum threshold at which it would consider disposal. Shares at the former State carrier were €2.20 when first floated in 2006.
He said the sale of the Government's stake would have no effect on the airline.
"The Government is a very passive shareholder at this point in time, has always been, and we do hope the liquidity of the stock will increase once its 25 per cent are placed in the market because our stock price has always suffered from the fact we have two large shareholders, Ryanair and the Government, and they do
not trade," he told RTÉ's Morning Ireland.
Mr Mueller maintained that Aer Lingus was not a candidate for consolidation with another airline at the moment.
"Our balance sheet is strong," he added. "The majority of airlines which have been bought in the last two decades have been heavily loss-making; we are not in that territory."
