SWORDS-BASED airline CityJet expects to reduce its operating losses by more than €20 million in the current financial year to mirror a similar performance in the 12 months to the end of March 2011.
Accounts just filed with the companies office here show that the airline, which is owned by Air France, reported a pre-tax loss of €54.8 million in the year to the end of March 2011.
This compared with a loss of €51.5 million in the previous year.
The increase in its bottom line losses was due to exceptional costs of €26.6 million being incurred during the period.
CityJet’s revenues rose by 22 per cent to €316 million in the period while the number of passengers carried increased by 10.5 per cent to 2.3 million.
The airline’s operating losses from its day-to-day trading activities fell to €25.8 million last year from €45.7 million in 2010.
In a statement issued to The Irish Times, CityJet said its operating losses would narrow further in the current year and nudge it closer to break even.
“We will again improve our operating position by well over €20 million,” its chief executive Christine Ourmieres said.
Ms Ourmieres said the operational savings achieved last year “were part of the considerable transformation process” introduced in 2010.
“We have reduced our fleet, changed the mix of aircraft on some routes and accelerated the merger of our Belgian subsidiary airline, VLM,” she added.
The exceptional items in last year’s accounts comprised an €8.9 million write down in aircraft earmarked for disposal; a €15.4 million write-down in its investment in VLM; and a €2.3 million provision for the early termination of an aircraft lease agreement.
The directors’ report states that “the company implemented a new business plan during the year with focus on optimising revenues and generating greater efficiencies in the use of its crew and aircraft”.
CityJet’s main base is at London City Airport, where it is the largest carrier operating flights to 17 European destinations, including Dublin. It increased its revenues in Ireland last year to €29.3 million from €24.4 million in the previous period. Its accumulated losses stood at €148.2 million while the accounts show it owed €196.4 million to Air France at the year end.