Aer Lingus pins hopes on autumn bookings
IRISH airline Aer Lingus nose-dived to wider first-half losses after a row with unions but said strong autumn bookings should lift annual profits higher than expected.
The flag carrier posted an operating loss of e27.8million (£24.6million) for the first six months against e19million a year ago as higher average fares failed to make up for a e15million loss from the dispute with cabin crew.
Passenger numbers also fell 1 per cent to 4,363,000 as the airline faced tough economic conditions, although passengers carried rose in the second quarter.
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But the group said annual operating profit should top hopes thanks to encouraging bookings for the rest of the year.
It forecast annual profit of about e22million, which would result partly from bringing passengers to Ireland from faster-growing parts of Europe.
Tourists visiting Ireland rose more than 15 per cent in the second quarter from a year ago as visits by Queen Elizabeth and US President Barack Obama helped repair Ireland’s battered economic image.
Chief executive Christoph Mueller said he was more positive about 2011 profits than at the start of the year.
He said: “We continue to believe Aer Lingus is a valuable business.”
