Dublin-based Emerald Airlines reduced its pre-tax losses by nearly 50% last year, reporting a loss of €11.52 million, down from €21.35 million in 2022. The airline, which operates Aer Lingus regional routes, also saw a significant revenue surge, with income more than doubling to €166.74 million from €81.34 million in the previous year.
In a statement accompanying its annual financial report, the directors of Emerald Airlines attributed the improved performance to the airline’s transition from a startup to a more established operation. They noted that the reduced losses represent “the progress we are making” in becoming a “maturing operation” with a solid foundation in its core markets. The directors expressed optimism for 2024, citing lower capacity growth as a factor that will help meet their financial targets in the coming year.
Emerald Airlines marked several milestones in 2023, including the launch of nine new routes as part of its largest-ever summer schedule for Aer Lingus regional services. The airline now operates 31 routes and employs 500 staff across its bases in Dublin and Belfast. It has become the leading operator at Belfast City Airport and boasts the largest network between Ireland and the UK.
However, the airline’s 2023 performance was not without challenges. The company experienced delays in the delivery of three new aircraft that were expected in the first quarter of 2023 but were not received until later in the year. As a result, the airline had less capacity during the peak summer season, which impacted its ability to fully capitalize on seasonal demand.
The company’s pre-tax losses also reflected non-cash depreciation and amortization charges of €9.3 million, along with finance costs of €6.4 million. Emerald Airlines’ directors noted that while the business continues to incur losses, they have been “significantly reduced” based on unaudited management accounts for the period following year-end.
In addition to its operational growth, Emerald Airlines also secured an Aircraft, Crew, Maintenance, and Insurance (ACMI) contract with British Airways in the summer, which the company views as a strong platform for future opportunities.
The airline’s financial situation is further supported by the Ireland Strategic Investment Fund (ISIF), which provided waivers for covenant breaches incurred at the end of December 2023 and June 2024. The company’s cash reserves declined slightly from €11.2 million to €10.4 million, and its staff numbers grew from 272 to 450, with staff costs increasing from €15.9 million to €27.59 million.
At the end of December 2023, Emerald Airlines reported a shareholders’ deficit of €30 million but remains confident in its ability to meet its financial obligations.