Aer Arann has released its trading updates for the first five months of 2008. The figures who a record number of passengers and a growth in the company's aircraft leasing business.

Garry Cullen.

According to the figures released, there were 430,100 passengers carried by Aer Arann in the first quarter of this year, a 3.1 per cent increase on quarter one 2007. It was the best ever May for the company, with ten per cent more passengers carried this year.

Six new routes were launched, including the airline's first ever jet services to Amsterdam, while there was also a significant expansion in Aer Arann's routes in Continental Europe. Aer Arann now serves Ireland, the UK, France, Holland, Spain and Portugal.

The Galway to London route increased by 23 per cent, while Dublin to Galway jumped by 13 per cent, Waterford to London increased by 11 per cent and Waterford to Manchester increase by 42 per cent. According to the company, the outlook for the remainder of 2008 is that there will be an 18.4 per cent increase for June 2008.

The company also leased aircraft to FinnComm (Finnair) and Flybe.

Garry Cullen, Managing Director, Aer Arann said: "For the first months to end May 2008, Aer Arann carried 430,000 passengers, a 3.1 per cent increase on the same period last year. The month of May delivered strong results, with 105,677 passengers carried in one month, a ten per cent improvement on the same month last year, due to the great success of Munster Rugby and excellent performance on Cork-Dublin route.

"The underlying passenger results continue to be strong, against a background of tough trading conditions throughout the aviation industry. Our international routes have registered a record growth of 10 per cent over the same period last year.

This year we have adjusted our business model through increasing the aircraft leasing side of the business. This has opened up new revenue streams and has enabled us to spread the risk during this difficult time for the airline industry."

Our fleet replacement and expansion programme has facilitated the leasing of spare aircraft to Finncomm (the commuter arm of Finnair) and Flybe, whilst still introducing our new fleet into our scheduled service. As a result, refining Aer Arann's strategy and focus going forward means we can face any difficult conditions from a position of strength.

Aer Arann's growth strategy focuses on connecting the regions with direct flights. Extending the Aer Arann footprint into Continental Europe is one of the keys to the future. Aer Arann continued to expand its network with the announcement of six new routes to Amsterdam, Faro, Malaga, Bordeaux, Brest and La Rochelle in the first quarter. Aer Arann now has 16 routes to mainland Continental Europe.

Despite the increase in fuel prices, Aer Arann is relatively good shape to cope with fuel costs in excess of $130 per barrel. Whilst fuel prices are something we have no control over, our fuel hedging strategy and fuel-efficient aircraft have protected us. Our greatest advantage is that our aircraft. The ATR 72 and 42 aircraft have the best fuel economics in the airline industry. Our ATR aircraft use 70 per cent less fuel consumption than a jet on similar routes, and use as much fuel flying 370 kilometers (230 miles) as a Boeing 747 consumes in 10 minutes of taxiing. As a result, Aer Arann is better insulated from the fuel price spike than other airlines."

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