Aer Lingus posted a 29 per cent rise in full-year operating profit this morning and said trading in the first quarter of this year had been tough but in line with expectations.
The group said operating profit rose to €107 million ($137.2 million) in the year to end-December from €83 million last year. Passenger numbers increased 5.5 per cent to seven million. But exceptional costs of €102.5 million including a provision of €97.9 million for the estimated cost of an employee severance and early retirement programme, cut net profit for the year to €1.2 million.
Aer Lingus made no mention of its search for a new chief executive. The airline has been hunting for a new CEO since November when Willie Walsh, who has since been appointed head of British Airways, announced his resignation.
The group, which has cut costs by €350 million since 2001 - 30 per cent of that year's cost base - said turnover increased by 2.1 per cent to €906.8 million. Staff levels were reduced, with the number of employees down 8.8 per cent to below 4,000.
The huge increase in the number of bookings made on the internet also helped to drive down costs. In the last year 66 per cent of all sales were booked through aerlingus.com, compared with just 8 per cent in 2001.
The company has reorganised its European routes, which meant that the number of passengers to London and other UK destinations fell, but continental passengers rose by 25.8 per cent.
There were 14 new routes launched in 2004 and another eight planned for 2005, the company said.
Aer Lingus chairman John Sharman said he was very pleased with the results. "The airline has recorded significant developments both in the reduction of costs and the implementation of its low fares strategy," he said.
Chief operating officer Niall Walsh said that much had been achieved in the year. "The airline has performed well in 2004, but competition continues to increase. "It is clear that our customers, whether they use our passenger or cargo services, want low fares and we will continue to respond to these market demands," he said.