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About LinkBacksAer Lingus swung to a pre-tax loss of close to ?120 million in 2008 and said it was unlikely to meet its previous forecast of a pre-tax profit for this year.
More from The Irish Times.
Aer Lingus swung to a pre-tax loss of close to ?120 million in 2008 and said it was unlikely to meet its previous forecast of a pre-tax profit for this year.
More from The Irish Times.
Would suggest moving this to transport as other airline data is being presented there.
The worrying thing for AL is that their operating losses are expected to get worse this year according to the report.
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Dismal result and they were claiming they would make an Operating profit as late as December.
A provision for cost reduction of €140 M means they will be paying out lots of cash in 2009 with little or no return.
Passenger numbers have declined in each of the last 4 months and clearly they do not expect them to improve that much.
So much for all the bravado of how they could exist on their own.
The cash position is in fact worse than they are declaring as they borrowed a Net Additional €150 M during the year.
Last edited by odie1kanobe; 11th March 2009 at 09:30 AM.
Cue 120,000 free flights from MOL..
Can Aer Lingus stand on its own for the next fwe years and survive...their cash pile will deplete pretty rapidly at this rate..
Why is it a "pre-tax" loss? You don't pay tax on a loss.
"Who will bailout the IMF after FF is finished with them?"
Yes you can as certain things which are included in calculation whether you made a profit or loss are excluded in the calculation of profit or loss for tax purposes.....Depreciation is one as you get Capital Allowances instead.Originally Posted by seabhcan
You can make a Loss and still pay Tax and a Profit and pay none.
Fair enough.
"Who will bailout the IMF after FF is finished with them?"
Not sure, but it looks like the answer might be in this sentence
Basically, they made a profit if you don't include the costs associated with the restructuring. Possibly (and I'm not speaking as an accountant here) these costs are treated across several years for the purposes of calculating tax.Aer Lingus delivered a 2008 pre-tax profit of €21.2 million after taking into account a net finance income of €38.8 million and before deducting an exceptional cost of €117.5 million for restructuring.
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Restructing is this case will be primarily redundancy and you pick up the cost when you know you are liable for it.....they would never be spread across a couple of years. Its why they have to show it in 2008 because as soon as they made the agreement they are liable even though they not paying until 2009.
Based on these figures I doubt it.
Additionally here's another reason me,my wife and two children will be flying from Dublin, via Newark, to Washington DC in May for 11 days, cost €156 per adult and €133 per child, return inclusive of all taxes.
Thats with Continental, Aer Lingus can't compete with those figures.
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