HIGHER COSTS HIT AER LINGUS - Higher fuel prices, pay bills and airport charges have led to a 42% fall in profits at Aer Lingus in the first six months of this year.
The airline, which is embroiled in disputes over pay and the future of its Shannon Heathrow service, reported pre tax profits of €11.5m between January and the end of June.
Revenue was up 12.9% to €574m, as passenger numbers increased almost 6%, as capacity rose.
Aer Lingus CEO Dermot Mannion said the airline delivered a solid financial performance in the first six months of 2007.
He said the airline operates in a seasonal business, with the majority of profits earned in the second half of the year, and anything over zero in this period is a good thing.
He said with the substantial increases in fuel prices in 2007, this seasonality influence has had a more pronounced impact.
He said that higher fuel costs are an issue, and staff costs are higher.
He said the load factor - the percentage of seats sold -was strong on short haul, put in the context of more competition, and on long haul was only down slightly on the same period last year.
He said that Ryanair's call on Aer Lingus to switch its Dublin Gatwick to service to Belfast to secure the future of the Shannon Heathrow service would be anti-competitive and destroy share holder value.
He said he is confident that the airline can face down Ryanair on this, and any other area they have issue with.
Speaking on the decision to transfer its Heathrow slots from Shannon to Belfast, Mr Mannion said Aer Lingus was in the middle of a recruitment campaign in Northern Ireland, and he is very confident it would attract the same calibre of staff.
