Bookings boost for Aer Lingus

Irish airline Aer Lingus yesterday revealed that strong bookings for the second half of 2011 meant its full-year profits will be better than expected, but weak domestic demand limited the potential for expansion.

The airline posted an operating loss of €27.8 million (£24.6m) for the first six months of 2011 as higher passenger yields – or average fares per passenger – failed to make up for lower passenger numbers and a €15m loss from a cabin crew strike at the start of the year.

Chief executive Christoph Mueller said: “We are far more optimistic now that at the end of quarter one.”

He said long-haul expansion was unlikely in the near term due to weakness in Ireland’s domestic economy.

Aer Lingus, which has a far-greater exposure to the ailing domestic market than larger Irish rival Ryanair, said its passenger numbers fell 1 per cent on the year, but its average yield per passenger in the first six months was up 8.4 per cent on a year ago.

Average passenger yields at Aer Lingus are likely to remain broadly flat in the second half of the year, with most growth potential in increasing volumes, according to chief commercial officer Stephen Kavanagh.

Aer Lingus’s booking profile for the second half of 2011 was better than expected with single-digit percentage increase in the second half compared to last year, Kavanagh said.

Chief financial officer Andrew Macfarlane said he expected an increase in the consensus forecast for operating profit for the year, which he said was currently around €21-22m.