Aer Lingus: 2010 operating result 'should be no worse than break even'
Aer Lingus announced it has raised its outlook for 2010, stating its operating result for the year (before exceptional items) “should be no worse than break even”, provided summer services are not disrupted by another issue such as the volcanic ash cloud in May-2010 (Reuters/BreakingNews.ie, 22-Jul-2010/Associated Press, 23-Jul-2010).
- 1H2010 performance: The carrier stated 1H2010 performance is ahead of last year’s performance, due to stronger revenues from increased fares and sales, particularly on trans-Atlantic routes, and lower fuel and staff costs. Aer Lingus will publish 1H2010 results in 24-Aug-2010.
- Fares and load factor:
- Trans-Atlantic: Average trans-Atlantic (long-haul) fares rose 17.4% year-on-year in 1H2010, due to improved business demand, while Europe fares rose 9%. Long-haul load factor increased by 5.9 ppts, while long-haul capacity was reduced by 31.6% for the period.
- Short haul: Average short-haul fares were up 9.0%, partly due to a change in booking patterns. Short-haul load factor declined 1.3 ppts, as capacity was reduced 5.3%.
- 2011 guidance: The carrier added it is too early to provide guidance for 2011.
Aer Lingus: “Recent yield performance and long haul load factors have exceeded our expectations and the forward booking profile suggests that this strength should continue for at least the third quarter,” Company Statement. Source: Reuters, 22-Jul-2010.