Aer Lingus says business in the third quarter of this year has been stronger than expected, particularly in the month of September.
In a trading update, it said the main factor had been improved yields, or average fares. Aer Lingus added that bookings suggested that October and November would also be ahead of expectations.
But the airline warned that forward revenues indicated that December and the first quarter of 2011 would be 'much weaker than anticipated'. But Aer Lingus said it could not yet say whether this was due to a recent trend towards later bookings or slow demand.
The airline now expects to report a full-year operating profit at the top end of market forecasts.
'This is provided that both the industrial action recently announced by cabin crew, and, any action that may arise out of the October 9 2010 pilot ballot for industrial action, do not result in disruption to operations and, consequently, impact the group's financial performance,' it warned.
Aer Lingus has said it does not expect disruption to flight services as cabin crew began a work to rule this morning in a dispute over new rosters.
Looking ahead to 2011, Aer Lingus said it shared concerns expressed recently by the International Air Transport Association (IATA) and other commentators that that the durability of the current upturn in the aviation sector upturn was in increasing doubt in both Europe and North America.
It added that completing its Greenfield cost-cutting programme remained vital if 2010 profits were to be sustained for the longer-term.
Aer Lingus shares closed 1.3% lower at 1.13 in Dublin this evening.
