The new chief executive of Aer Lingus, Dermot Mannion, has said continued high fuel costs will cut operating profits at the airline substantially this year. He said that high oil prices would cost the airline €100m this year.
Last year, Aer Lingus reported operating profits of €107m. Today, Mr Mannion said he hoped the profits' figure would be in excess of €50m for this year.
He declined to give a specific profits forecast, but said that profits of around €60m would be a good performance compared to other airlines.
He said that while profits would be down, revenue would be higher - thanks to the impact of 24 new routes which opened during the year.
Mr Mannion said the airline's fuel costs were 40% hedged for 2006, and added that it was in a better position for buying fuel compared to many other airlines.
He added that high oil costs should not dampen enthusiasm for the eventual sale of a majority stake in the airline as Aer Lingus was demonstrating that it could cope with higher fuel costs.
The new chief executive of Aer Lingus also said that he expects to make an announcement on new routes next month. He said that Aer Lingus should be in a position to make orders for new aircraft by the end of the year. He also said he expected the airline to be sold in the next 18 months.
Mr Mannion sees Dublin developing as a hub connecting long-haul East to long-haul West flights. He stated that the airline's green shamrock logo would not be dropped as long as he remained CEO.
Mr Mannion also said Labour Relations Commission talks with trade unions were making good progress and he hoped for a resolution of outstanding issues in the near future.
The new Aer Lingus CEO said he would be loyal to Aer Lingus staff and promised where possible to recruit from within the organisation rather than introducing outside expertise.
