Aer Lingus revenues up 6pc in 2011

Aer Lingus chairman, Colm Barrington, said the airline’s operating profit of €49.1m (down 6.5pc from €52.5m) was achieved “despite difficult economic conditions in our markets, particularly in Ireland, and a significant increase in fuel and airport costs”.

Pre-tax profit was €84.4m (up over 300pc from €27.3m) as a result of several exceptional credits, particularly the surrender of the lease on its head office building.

Total passenger numbers, including Aer Lingus Regional, were up 5.4pc to 10.4 million, while average yield increased by 4.8pc to €112.27.

CEO Christoph Mueller said the board expects Aer Lingus to remain significantly profitable in 2012, albeit below 2011 levels. “This will be challenging and will require us to drive increased passenger volumes and to also generate a higher average yield per seat across the network,” he said.

“We expect that Aer Lingus’ key markets will remain very competitive in 2012.

“We are likely to be exposed to higher non-controllable costs in 2012. In particular, fuel prices are expected to remain at their current levels for the foreseeable future. While we continue to put in place hedging protection, the 2012 fuel bill is likely to be significantly higher than in 2011 as the cost of protection adjusts to revised market expectations about the future trajectory of fuel prices.”

The annual report also reveals that Mueller received a remuneration package of €1.244m in 2011, including a €611,000 performance related bonus.

Chief financial officer Andrew Macfarlane earned €1.055m in 2011, including a €366,000 performance related bonus and €204,000 in deferred transformational performance bonus scheme.