Aer Lingus today issued an unaudited trading update for the year ended 31 December 2009. It reported a revenue fall of 11% and operating loss before exceptional items of €81.0m.
Aer Lingus announced on Monday afternoon that it was deferring the release of its preliminary results for the year ended 31st December 2009, which were due to be released this morning. The preliminary results contained a restructuring charge that is consistent with the agreements reached with union representatives, and recommended by them to their members, in relation to the company's planned €97m cost savings programme. The airline said following the outcome of recent staff ballots it is necessary to revise the provision for restructuring costs and amend the preliminary results accordingly.
Aer Lingus said it has been notified of the results of four of the five staff ballots on the cost reduction proposals. The airline said it gratefully acknowledges the support of its Pilots (IALPA), Middle Management (IAESA) and SIPTU (Ground Operations/Support areas/ certain Cabin Crew) for the restructuring that is needed to return the airline to profitability. However, cabin crew represented by IMPACT rejected the proposals. Last night craft workers voted by 83% in favour of the cost saving deal.
The airline said despite the outcome of the IMPACT ballot, it is determined to achieve the annualised cost savings of €97m targeted by the cost reduction programme over the period to 2012. These savings are vital to realign the cost base of the company and position Aer Lingus for a successful future. The Company's Board of Directors will meet tomorrow to formally approve the steps that will now be taken to achieve these cost savings.
The board of Aer Lingus is to hold an extraordinary meeting today to consider its options.
Trading highlights for the 12 month period were:
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Total revenue declined 11.0% to €1,205.7m (2008: €1,355.0m), with strong performance in ancillary revenues offset by reduced passenger fare and cargo revenue. Total capacity fell by 5.1% in 2009.
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Total passengers up 3.8% to 10.4m (2008: 10.0m).
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Operating loss, before exceptional items, of €81.0m (2008: €20.0m).
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This operating result represents an operating loss before exceptional items of €93.0m in the first six months of 2009 (2008: €23.4m) followed by a second half operating profit before exceptional items of €12.0m (2008: €3.4m).
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Average fare for the year declined by 16.8% on 2008, being a 12.0% fall on average short haul fare and a 15.9% fall on average long haul fare.
