Aer Lingus contributes €622m in revenues for IAG

Fuller aircraft helped boost Aer Lingus's profits by €72 million in the year that International Consolidated Airlines Group (IAG) bought it for €1.4 billion.

The Irish airline’s operating profits grew to €124 million last year while total revenues rose 10.4 per cent to €1.72 billion, according to figures published yesterday by IAG.

Increased passenger numbers, which meant it sold more seats on its aircraft, helped drive the disproportionate increase in its bottom line. "We generated more revenue on a fixed cost base," Aer Lingus chief executive, Stephen Kavanagh said.

He added that its transatlantic business, which is particularly profitable, also grew strongly during the year.

Passenger revenues were up 11.3 per cent at €1.63 billion, while it sold 81.6 per cent of all the seats on its aircraft, two percentage points more than in 2014.

Dublin runway

Speaking after the results were published yesterday, Mr Kavanagh and IAG chief executive, Willie Walsh, both said that they were prepared to back Dublin Airport's €250 million plan for a new runway.

However, Mr Kavanagh stressed that the runway was not the only area that required capital spending and argued thatthe airport should also tackle areas that are now vulnerable to congestion as passenger traffic increases.

Mr Walsh noted that Dublin's plans affected IAG's other carriers, British Airways, Iberia and Veuling. "We will be supporting the process," he said.

However, he warned that the airport should not ask airlines to pre-fund it, transferring all the risk from its shoulders to theirs.

Belfast operations

Meanwhile, it has emerged that Aer Lingus is reviewing its operation in Belfast City Airport in a move that could lead to a small number of redundancies from its 60 or so workers there. However, services there will not be affected.

IAG paid €1.4 billion for Aer Lingus in August after a long-drawn out bidding process.