Rising costs continue to put pressure on air fares, according to Irish carrier Aer Lingus, which on Friday reported a €40 million profit for the first six months of this year.
Air travel costs are up as much as 32 per cent on pre-Covid levels, some analysts calculate, but Aer Lingus maintains that its prices are broadly similar to last year’s.
“There are still some factors that are pushing up our costs and impacting air fares,” the airline said, singling out fuel and general supplies.
Managing disruption across Europe requires Aer Lingus to have more resources available to it, which it said also affects costs.
The airline pointed out that its margins – the difference between its costs and the profit it makes – remained below pre-Covid levels.
Aer Lingus earned a €40 million profit in the six months to the end of June, turning around an €83 million loss from the same period last year, but only just exceeding 50 per cent of the €78 million it generated in the first half of 2019.
A €121 million gain in the three months to June 30th offset an €81 million operating loss in the first quarter of this year, Aer Lingus noted.
Business travel has not fully recovered from Government pandemic curbs, emphasising the importance of leisure and the “key importance” of the summer peak to the carrier.
First-half sales topped €1 billion, 50 per cent in advance of the €666 million it earned during the same period last year.
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Its parent, International Airlines Group (IAG), had a record first half operating profit before once-off charges of €1.3 billion, up from a loss of €446 million in the same period of 2022.
IAG, which also owns British Airways, Iberia and Vueling, said strong demand was driving good returns
Aer Lingus is focused on growing its United States business, targeting new cities including Cleveland, Ohio, and reopening previous destinations such as Hartford, Connecticut. Short-haul destinations were also in demand, particularly European sun spots.
“We have rebuilt our capacity to pre-pandemic levels and expanded our transatlantic routes and frequency, offering the largest ever number of seats to North America in 2023,” said the airline.
The Irish carrier expects more than 40,000 to travel to the Aer Lingus College American Football Classic game between Notre Dame and Navy, on Saturday, August 26th in the Aviva Stadium, the largest ever movement of US citizens to another country for a major event.
