Aer Lingus reported a Q3 2024 operating profit of €139m, a decrease of €57m from Q3 2023, largely affected by pilot industrial action and increased market competition, particularly across the Atlantic.
Aer LIngus carried 3,353k passengers for the quarter July-September. Load factor was 81.6pc for the nine months to September, RPK was up 1.8pc and ASK was up 3.1pc. For the first nine months of 2024 Aer LIngus carried 8,497k passengers. Cargo was up by 21pc for the nine months.
The summer industrial action had a significant impact of €55m over Q2 and Q3 and affected forward bookings, while competitors increased capacity to Ireland by 20pc, pressuring Aer Lingus’ long-haul economy revenues.
The High Court’s decision to maintain aeronautical slots at Dublin Airport has alleviated a proposed 5pc seat reduction by the IAA for Summer 2025, a positive influence on Aer Lingus’ capacity planning.
Aer Lingus is expanding its network with the addition of six A321 XLR aircraft by 2025, launching new routes to Nashville and Indianapolis in 2025, and has recently introduced direct flights to Las Vegas. Over 25,000 fans travelled to the Aer Lingus College Football Classic in Q3
IAG announced a strong financial performance for Q3 2024, achieving a 15.4pc increase in operating profit to €2,013m and a 1.4 percentage point increase in operating margin to 21.6pc, driven by robust demand in core markets.
In the first nine months of 2024 the IAG group’s operating profit before exceptional items was reduced by €96m due to what a written statement describes as adverse exchange rate impacts.
Profits for the nine months (before exceptional items) at BA were €1,664m, Aer Lingus €148m, Iberia €816, Vueling €389m and IAG Loyalty €382m.
Total revenue grew by 7.9pc to €9,329m for the quarter, primarily fueled by higher passenger revenues, while passenger revenue per available seat kilometer increased by 1.2pc.
IAG revealed a €350m share buyback program, reflecting its commitment to deliver sustainable returns to shareholders, alongside significant free cash flow generation and a strengthened balance sheet.
The company reported a profit after tax of €1,435m for Q3, up 17pc from the previous year, alongside a decrease in net debt to €6,189m and improved net debt to EBITDA ratio of 1.0 times.
Iberia’s growth of 15.5pc versus the first nine months of 2023 is principally driven by the increase in its number of Airbus A350-900 aircraft flying to North and South America, with an average of 22 A350-900 aircraft in service for the first nine months, compared with an average of 17 in the first nine months of 2023.
