Aer Lingus will ask shareholders to allow it reduce its non-distributable reserves by up to €500m and give it greater flexibility to consider paying dividends in the future.
Aer Lingus has not made any dividend payment or other form of distribution to shareholders since its initial public offering in 2006. It said in a circular to shareholders today that it was not currently contemplating any such payments.
But it wants the changes as its structure prohibits dividend payments owing to accumulated realised losses being four times the €57m in retained earnings earmarked for possible shareholder distribution.
"While the board believes that it is in the best interests of all shareholders to consider a dividend when there is a more durable recovery and consequent earnings visibility, the board has nonetheless reviewed the group's balance sheet with a view to improving flexibility for the future," the circular said.
The airline's shareholders - which include the Government and Ryanair - will meet at an extraordinary general meeting on November 4 to vote on the changes.
