Aer Lingus Q3 revenues the strongest in six years, trade union vote awaited
Irish carrier Aer Lingus said its third quarter saw the best operating results since the financial crisis in 2008.
Aer Lingus Group
€2.53
16:34 16/09/15
Revenue rose 13.9% to €531.1m during the third quarter from €447.2m same time last year.
The company said the increase in revenues was driven by strong short-haul performance and successful long-haul capacity expansion.
Long-haul fare revenues increased by 34% to reach €175.9m during the third quarter while short-haul fare revenues jumped by 5.5% to €274.3m.
To continue its growth, Aer Lingus is launching a new Dublin to Washington service in May 2015.
“This will provide even more connectivity for our passengers and strengthen Aer Lingus' and Dublin's position in traffic between Europe and North America,” chief executive Christoph Mueller said.
Profit before exceptional items also increased by 19% to €112.9m.
Earnings before interest and taxes (EBIT) increased 19% to €112.9m (Investec: €102.8m).
“Assuming the current trading environment is maintained, management now expect that Aer Lingus' full year 2014 operating profit, before exceptional items, will be ahead of the 2013 operating result,” Mueller said.
Investec analysts gave a ‘buy’ recommendation and a €1.7 target price.
The broker also pointed out that the airlines' trade unions vote on the IASS resolution today, "which could be the most important news of all."
Shares rose 0.17% to €1.52 at 10:32 on Wednesday.