Aer Lingus Increases Profits: Is Growth Still Viable in Dublin?

Aer Lingus Increases Profits: Is Growth Still Viable in Dublin?
Photo Credit: Kyle Hayes/AviationSource

Aer Lingus has this week reported a full-year profit of 225m EUR, which continues to be shadowed by stunted growth opportunities in Dublin.

The Irish legacy carrier has made strong waves compared to 2022, but could this be disrupted?

Without further ado, let’s get into it…

The Financial Side of Things…


Aer Lingus Increases Profits: Is Growth Still Viable in Dublin?
Photo Credit: Kyle Hayes/AviationSource

Dublin-based Aer Lingus posted a profit of 225 million EUR from revenues of 2.2bn EUR.

This is a significant improvement from the 168m EUR of profit from 505m EUR of revenue posted in 2022.

Like with other carriers under the IAG umbrella, costs have gone up, which are as follows:

  • Fuel, oil costs and emissions charges – 100m EUR to 639m EUR.
  • Employee Costs – From 78m EUR to 471m EUR.
  • Supplier Costs – 143m EUR to 789m EUR.
  • Ownership Costs – 16m EUR to 150m EUR.

So, like with the whole of IAG, Dublin-based Aer Lingus has performed strongly financially.

Could The Dublin Airport Cap Hinder Further Expansion for Aer Lingus?


Aer Lingus Increases Profits: Is Growth Still Viable in Dublin?
Photo Credit: Kyle Hayes/AviationSource

The Dublin Airport Cap has been a topic of discussion for the largest airlines out of the airport, with Aer Lingus being one of them.

They have previously criticised the DAA for handing in an application quite late to increase it.

It’s other competitor from the airport, Ryanair, has been a little more vocal about this issue.

This has gone as far as CEO Michael O’Leary calling on “sleepy” Transport Minister Eamon Ryan to resign over this.

Furthermore, in the context of Aer Lingus, a continued cap on passenger numbers could stunt potential growth.

The Irish airline could only get so far under the rules of the cap, whilst having to share slots with other airlines.

It is ultimately why the likes of Ryanair and others are calling for the passenger cap to increase very soon.

Growth Away from Ireland: Segue into the UK…


Aer Lingus Increases Profits: Is Growth Still Viable in Dublin?
Photo Credit: Harrison Rowe/AviationSource

Aer Lingus has placed some level of focus further into the UK market, with Manchester being a big focus.

Away from Dublin, the airline celebrated two years of operations from the UK airport back in October.

Over two million passengers have been handled by the UK subsidiary of the Irish carrier, showing strong growth.

Frequencies have increased by Aer Lingus out of Manchester over the Winter, with this expected in the Summer too.

It ultimately adds to the point that if things don’t change at Dublin Airport, then expansion elsewhere will take place.

All eyes will be on how this looks throughout 2024 from the Manchester side of things.

Overall…


Photo Credit: James Field/AviationSource

In conclusion, Aer Lingus had a strong 2023, despite external pressures pressing on them.

Looking ahead, they will no doubt continue to lobby Fingal County Council to increase the passenger cap at Dublin.

If they can get the cap lifted, then it will open up opportunities to launch more routes and frequencies.

This in turn, will increase passenger numbers, thus revenue and profitability going into the future.

All eyes will be on this issue throughout the entirety of 2024, until a decision is ultimately made.

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By James Field - Editor in Chief 4 Min Read
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