Aer Lingus today reported a first quarter loss broadly in line with last year, and said its forward trends were positive.
For the three months to the end of March, when it traditionally makes a seasonal loss as fewer customers fly, Aer Lingus reported an underlying operating loss of €48.4m.
This was in line with the €48.5m loss it posted in the same time last year.
Revenues for the first quarter rose by 7.9% to €280m on the back of what it called an "excellent" performance from its long haul operations as well as year on year growth in retail, cargo and other revenue categories.
Aer Lingus is currently the target of a takeover approach from British Airways-owner IAG. The airline's board today repeated its support for IAG's approach but provided no further update on the takeover today.
Any transaction is currently stalled pending a decision by the Government on whether to sell its 25% stake in Aer Lingus, a condition of the deal.
"The IAG offer to acquire 100% of Aer Lingus will deliver significant benefits for all Aer Lingus stakeholders. However, notwithstanding the opportunities that this combination will bring, we are focused on building Aer Lingus and improving our return on invested capital performance," commented the company's chief executive Stephen Kavanagh.
Aer Lingus said its long haul passenger fare revenues rose by almost 40% to €82.5m as long haul capacity increased by 12.6%. It said that yield per seat rose by 20.6%, supported by the stronger US dollar and higher sales in North America.
But the airline's short haul passenger fare revenues fell by 4.7% to €132.2m with capacity on short haul routes decreasing by 7.3%.
Aer Lingus said its staff costs rose by 6% in the three month period to €72.2m mainly due to higher cabin crew and flight operations associated with its new Transatlantic routes.
Despite the big drop in oil prices, Aer Lingus said its fuel costs in the first quarter rose by 8.5% to €72.5m. It said that forward fuel prices for delivery this year started to fall significantly in the last quarter of 2014, but because its hedging arrangements for the first quarter of 2015 were in place by last September the savings were limited.
It added that fuel cost decreases will become more evident later this year.
"In the coming quarters, we will focus on capitalising on peak demand opportunities, while aggressively managing our cost base," commented CEO Stephen Kavanagh.
He said the airline's short haul operations will continue its demand-led strategy to drive load factor, manage seat yield and retail revenue per passenger.
On its long haul activities, Mr Kavanagh said the airline's new Washington route will start soon, while it will also see increased frequencies on its New York, San Francisco and Orlando routes.
Shares in the airline closed 1.2% higher in Dublin trade today.
