Aer Lingus Group PLC said today that it is to concentrate on cost-cutting to safeguard against challenging market conditions as it reported a 16.4 percent rise in full year operating profit.
To counteract currency weakness, continued strength in oil prices and fears of reduced growth in major markets in 2008, that company claimed it is ‘critical’ that it continues to take cost out of its business so it can ‘continue to offer customers low fares and in doing so remain relevant in our chosen markets.’
Strong performance
For 2007, Aer Lingus revealed that total revenue rose by 15.2 percent to €1,284.9 million, while pretax profit rose 38 percent to €124.8 million on a 15.2 percent rise in overall revenue to €1.28 billion. Full year operating profit climbed 16.4 percent before an employee profit share of €88.5 million.
Commenting, Dermot Mannion, Chief Executive, said: “2007 was a year of further progress for Aer Lingus and the Group’s first full year trading as a quoted company. We continued to grow the network, drive up ancillary revenues while at the same time reduce unit costs. Despite soaring oil prices and an increasingly competitive marketplace, operating profits remained strong in 2007 and were better than expectations.”
March 12, 2008