Aer Lingus has said its financial forecasts for 2008 remain unchanged. In advance of a number of meetings with shareholders, Aer Lingus says that it expects to report a profit for 2008 despite an operating loss of about €20m, helped by income from interest.
The airline also said that it expects to report a profit next year on the back of the benefits of the recently agreed cost-cutting plan and the significant reduction in fuel prices. It repeated that it is on track to deliver at least €50m in cost savings.
Aer Lingus said that it had hedged 72% of its fuel requirements at a price of $911 per tonne for 2009 and 22% cover for 2010 at a price of $876 per tonne. Recently the airline announced that it was eliminating its long-haul fuel surcharges.
Aer Lingus said it now expects to have a much higher cash balance as a result of a substantially better performance in 2009 than was anticipated in August.
It said this is despite the costs it will incur in the defence of the unsolicited offer for the airline by Ryanair. 'While these costs will be substantially below the amount incurred in the defence of Ryanair's previous unsolicited offer in 2006, Aer Lingus regrets this unnecessary waste of shareholders' cash especially as the Ryanair offer is not capable of completion', the statement said.
Little interest in Ryanair offer
Aer Lingus said it noted the 'extremely low level of acceptances' received by Ryanair in respect of its offer for Aer Lingus.
'Excluding its own holding, Ryanair has received a pathetic 0.01% acceptance level from Aer Lingus shareholders reflecting the unanimous view of the Aer Lingus board that the offer significantly undervalues Aer Lingus,' it said in today's statement.
Aer Lingus shares closed down three cent at €1.47 in Dublin.
