Aer Lingus 2008 Annual Report Download - page 10

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AER LINGUS GROUP PLC - ANNUAL REPORT 2008
8
Operating costs
In 2008, the Group made significant progress on cost
reduction initiatives, particularly in relation to new
agreements on maintenance and staff costs, which
will deliver savings in 2009 and beyond. In 2008, cash
operating unit cost* and excluding fuel continued to
fall, dropping from 4.19c to 3.80c per available seat
kilometre. Total operating costs* increased by 14.9%
to €1,375.0m, primarily as a result of higher oil prices
and increased operations.
The largest increase was in fuel costs, rising by
€148.0m (58.4%) to €401.3m. Fuel represented 29.2%
of operating costs* in 2008, up from 21.2% in 2007.
Staff costs (pre-exceptional), which represent 24.3%
of operating costs* (2007: 25.7%), rose by 8.8%
to €334.3m, while the average numbers employed
increased from 3,905 in 2007 to 4,035 in 2008.
Airport charges represent 17.7% of operating costs*
(2007: 18.5%) and increased by 9.7% through a
combination of higher passenger volumes and increased
charges by the airports served.
During the year, the Group concluded new contracts
with a number of world-class suppliers on the provision
of maintenance services. This resulted in the reduction in
maintenance cost provisions to reflect the new contracts
agreed in the year. Maintenance costs decreased from
€82.6m in 2007 to €74.4m in 2008.
Operating loss
Operating loss* was €17.6m in 2008 (2007:
profit of €88.5m).
Employee profit share
There was no charge for employee profit share in 2008,
as minimum return targets were not met. A charge of
€9.8m was made in respect of the employee profit
share for 2007.
Cabin crew member & actor Byron Kumbula who starred in the Oscar
nominated Irish short film “New boy”.
Aer Lingus award-winning cabin crew, Claire Sutton from Dublin, Karen
Nicholl from Belfast, Niamh O Leary from Cork, celebrate the airline’s
win, scooping top prize “Airline of the Year”, at the iSPY Awards
Cabin crew member, Sinead Mulvey, who will represent Ireland at the
Eurovision Song Contest in Moscow in May 2009
* stated before employee profit share and net exceptional items