Dublin-headquartered airline, Emerald Airlines, last year almost halved its pre-tax losses to €11.52m as its revenues more than doubled to €166.74m.
The airline, which commenced operations in 2022, operates Aer Lingus’s regional routes and in their report, the directors for Emerald Airlines Ireland Ltd state that “the significantly reduced losses incurred in our second year in operation represent the progress we are making in moving from a start-up to a maturing operation with an excellent baseline established in our core markets”.
The directors state that this combined with lower capacity growth in 2024 “places us in an excellent position to deliver on financial targets in the year ahead”.
The company’s pre-tax losses were reduced by 46% from €21.35m to €11.52m last year as revenues increased by 105% from €81.34m to €166.74m.
The airline reduced its losses on the back of the firm completing its biggest ever Aer Lingus regional Summer schedule in 2023 operating 31 routes with nine routes launched.
The directors state that the company now employs 500 people between its bases in Dublin and Belfast and “within 24 months of first operation, we have become the No 1 operator at Belfast City airport and have the largest network of any carrier between Ireland and the UK”.
They state that 2023 “saw the close out of our operational start-up phase”.
The directors state that the 2023 performance was impacted by delays in the delivery of three new aircraft to bring the fleet to 17.
The directors state that the aircraft were due to be delivered in the first quarter of 2023 but they were delivered in April, May, and September and “the delays resulted in less summer season capacity than originally planned”.
The pre-tax losses for 2023 take account of non-cash depreciation and amortisation charges of €9.3m and finance costs of €6.4m.
This Summer, the firm commenced an aircraft, crew, maintenance and insurance (ACMI) contract with British Airways. Directors state “this has provided us with a very solid platform for further opportunities in the coming years”.
A note attached to the accounts on the company’s going concern status states that the group has continued to incur losses subsequent to year end based on unaudited management accounts and the losses “have significantly reduced”.
The directors state that, based on budgets prepared, the group has adequate resources to meet its liabilities as they fall due.
The note states that the Ireland Strategic Investment Fund (ISIF) has provided waivers on covenant breaches incurred on December 31, 2023 and June 30, 2024.
The note states that the group maintains a good relationship with its financiers and is confident based on past history that this relationship will be maintained.
Numbers employed increased from 272 to 450 as staff costs increased from €15.9m to €27.59m.
The group had a shareholders’ deficit of €30m at the end of December last. The group’s cash funds declined from €11.2m to €10.4m.