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Fall in profits for Aer Lingus ahead of takeover by IAG group

Published 29/07/2015

Aer Lingus blamed fluctuations in foreign exchange rates and high fuel prices for its drop in profits
Aer Lingus blamed fluctuations in foreign exchange rates and high fuel prices for its drop in profits

Aer Lingus turned a profit of 34.5 million euro for the second quarter of the year as the much-anticipated takeover by the International Airlines Group (IAG) nears.

The carrier revealed a drop in profits of about 11% from the same period last year as fluctuations in foreign exchange rates, mainly the US dollar and euro, and high fuel prices hit the business.

In the first six months of this year the airline said operating losses were just under 14m euro compared to almost 10m euro for the same period last year.

Aer Lingus expects the impact of currency costs will ease as the year goes on.

Chief executive Stephen Kavanagh used the release of the half yearly figures to once again promote the takeover by IAG.

"The adverse effects of unfavourable FX movements on performance which were evident in this quarter will moderate in the second half of the year as a result of a higher proportion of US$ denominated revenues," he said.

"Both short and long haul capacity are set to expand into the peak season and we are very satisfied with forward yield and load factor profiles at this time."

Mr Kavanagh added: "Finally, I would like to reiterate the view of the independent directors of Aer Lingus that the combination with IAG will strengthen Aer Lingus and will grow our airline and contribute to growth in the tourism sector and wider Irish economy."

Aer Lingus said its 2015 half year figures showed revenue grew by 7% while passenger numbers, retail and cargo business all increased.

The airline said it carried an additional 38,000 long haul passengers during the period, up 10% on the same period last year, and it delivered 14.4% more revenue per seat year on year.

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