Aer Arann sees 300% rise in pre-tax profits

Aer Arann has posted a 300 per cent rise in pre-tax profits last year to €7

Aer Arann has posted a 300 per cent rise in pre-tax profits last year to €7.6 million following the introduction of new routes.

These eight additional routes saw turnover at the airline rise from €42 million to €70 million.

Aer Arann received €18 million as a subsidy payment from the Exchequer for its Public Service Obligation routes to regional airports, according to reports this morning.

However, this year has been less smooth for the airline. A senior Aer Arann executive, Peter McKenna, recently left the airline, and it was forced to scale back services into Cork after Ryanair significantly increased its capacity to the airport.

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Aer Arann responded by developing its services to the Isle of Man.

Padraig O'Ceidigh, the airline's chief executive, admitted that 2005 would be more challenging than last year.