Aer Lingus has been struggling on the regular, but if investor/competitor Ryanair also had trouble this summer perhaps the excuses are legit. This time.
Aer Lingus Group Plc fell the most in more than four years in Dublin trading after the Irish carrier cut its full-year profit forecast after the summer heat wave weighed on bookings.
Aer Lingus fell as much as 19 cents, or 12 percent, to 1.39 euros, and traded at 1.49 euros as of 9:23 a.m. The stock has gained 35 percent this year. Ryanair Holdings Plc, the carrier’s largest shareholder, dropped as much as 1.8 percent.
The company said this year’s operating profit before one- time items will be about 60 million euros ($80 million), compared with a target of matching last year’s 69.1 million euros, according to a statement today.
“The current booking profile for the rest of the year suggests that despite more aggressive pricing in response to market conditions, it will not be possible to recover lost volumes experienced in July and August as a result of the warm weather,” Aer Lingus said. “In addition, the intensely competitive pricing environment will continue to impact higher yielding in-month bookings.”
The revision comes after Ryanair said Sept. 4 that it may miss its annual profit target. Aer Berlin Plc said Aug. 15 the warm weather in northern Europe slowed bookings and made meeting the full-year profit target more difficult.
Aer Lingus said it would look for further cost reductions “in order to preserve competitiveness and protect future profitability.”
Editor: Benedikt Kammel. To contact the reporter on this story: Robert Wall in London at email@example.com. To contact the editor responsible for this story: Benedikt Kammel at firstname.lastname@example.org.
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Photo Credit: File photograph shows ground crew parking an Aer Lingus aircraft at Dublin Airport in the Republic of Ireland. Paul Mcerlane / Reuters
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