Aer Lingus has reported a drop in pre-tax profits in its first set of results since its move to the stock market last year.
The airline said pre-tax profits for 2006 were €90.4m, down from €91.6m in 2005. It blamed higher fuel costs and the impact of the terrorism alert in the UK last August.
Total revenue rose by 11% to just over €1.1 billion, with total passenger numbers up 7.3% to 8.6 million. But the load factor - the percentage of seats filled - dropped from 81.4% to 77.6%.
Short-haul passenger numbers were up 9%, though capacity grew by 20.6%. Long-haul passenger numbers fell by 4.4%.
Ancillary revenues - including sales on board and car hire commissions - climbed by 34% to €63.4m. The airline said fuel costs jumped by 44.4% or €61.7m while staff costs rose by just over 8%. Aer Lingus also said it spent more than €16m on fees to financial advisers and lawyers to mount its defence against Ryanair's takeover bid for the airline.
The airline said it was performing in line with expectations so far this year, though there was 'some pressure' on fares.
Speaking on RTE's Morning Ireland, Aer Lingus chief executive described it as a 'very strong' performance in the light of higher fuel prices and the costs linked to the security alert in London which disrupted UK flights.
He added that the figures were slightly ahead of what most analysts had expected at the time of the flotation.
Asked about the industrial relations situation at the airline, Mr Mannion described the recent Labour Court recommendation on its cost-cutting proposals as 'positive'. He said management was working with the unions and the Labour Court to come up with a package of measures. Mr Mannion said he expected the process to be concluded in the next three to four weeks.
The chief executive also defended the €16m in fees paid to defend the airline against Ryanair's takeover bid, saying the airline was doing better than it would have under Ryanair.
Mr Mannion said Aer Lingus would make a decision on buying more new planes for its long-haul aircraft in the coming months.
SIPTU's national industrial secretary Mick Halpenny told RTE radio staff could take much credit for the profit figure, but he did not share Mr Mannion's optimism on the industrial relations situation.
He said the flotation had been a 'disaster' and the union's opposition had been proved correct. He said the flotation price of €2.20 had invited a hostile takeover.
Aer Lingus shares closed down five cent at €2.85 in Dublin this evening.
