Irish takeover target Aer Lingus reported an 18 per cent increase in annual profits yesterday as its suitor, British Airways owner IAG, struggled to convince the Irish government to back its bid.
Aer Lingus said 2014 operating profits before exceptional items rose to €72 million from €61 million on strong long-haul performance. Revenue rose by 9.2 per cent.
Aer Lingus’ board last month recommended a €1.36 billion offer from IAG (International Consolidated Airlines Group), subject to the Irish state selling its 25 per cent stake, but political and trade union opposition has been significant.
Members of the Irish government have cited Aer Lingus’ profitability as a reason to maintain it as an independent airline.
Aer Lingus management have countered that a takeover by IAG would boost growth potential and help it fend off growing competition.
The Irish Independent newspaper yesterday reported that members of junior government coalition partner the Labour Party were preparing a motion for their national party conference later this week that would block it from supporting the stake sale.