04/05/2010

Ash Clouds Aer Lingus Profit Projections

As volcanic ash again hit travellers across Ireland today, Aer Lingus has said that the previous disruption to air travel caused by volcanic ash cloud has cost it about €20m euros ($26.3m; £17.2m).

However, the final figure may be a lot more as it depended on the actual level of customer claims. As flights in and out of Northern Ireland and the Irish Republic were returning to normal this afternoon after a short 'no fly period' was again imposed, Aer Lingus said that total revenues for the three months to 31 March fell by 1.8%.

The operating loss for the quarter was €37.8m euros, compared with a deficit of €74.8m for the same three months of 2009.

In a trading update, the company said: "While the trading environment remains challenging, early indications on second quarter revenues are positive."

But Aer Lingus added: "We have limited visibility over the booking profile for [the rest of the year] and our key markets remain subdued.

"It is also uncertain whether the recent Icelandic volcanic eruptions will have a longer term impact on passenger travel plans."

(BMcC/GK)

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