Ash cloud boosts ICG revenue

Irish Continental Group increased revenue by 2

Irish Continental Group increased revenue by 2.2 per cent in the first half of the year, as passenger numbers rose thanks to the disruption of European air space from the volcanic ash cloud.

Profit also rose, despite higher fuel costs, ICG said.

The first half of the year is generally considered less profitable for the company. However the company reported revenues of €122.4 million, up from €11.9.8 million in the same six month in 2009. Operating profit rose 23.9 per cent to €8.8 million.

Earnings before interest tax and depreciation were €20 million, rising 6.4 per cent from the €18.8 million recorded last year. Fuel costs rose 48 per cent to €20.1 million.

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Irish Ferries recorded a 12 per cent rise in passengers to 695,700, but the number of cars carried fell 1.4 per cent to 156,400. Stronger sterling contributed to higher yields.

The passenger figures were also boosted by the closure of European airspace in April and May due to the volcanic ash cloud coming from Iceland.

In freight, the company saw its volumes fall 12.6 per cent in the roll on roll off market as weakness in the |Irish economy continued.

Revenue rose to €68.0 million for the Irish Ferries division.

Turnover in the container and terminal division, which includes shipping lines Eucon and Feederlink and the division's container terminals in Dublin and Belfast, was unchanged at €54.4 million. Operating profit was reduced to €2.3 million from €3.2 million a year earlier as due to restructuring costs in the Dublin terminal.

ICG chairman John McGuckian said the company remained cautious on the economic prospects for the second half of the year but was confident that it was well placed to compete successfully in our market place".

Shares in the company fell 1.5 per cent on the Dublin market this afternoon to €14.50.