In preparing these condensed, consolidated interim financial
statements, the accounting policies adopted are consistent with
those of the previous financial year. The significant judgements
made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those
that applied in the preparation of the annual consolidated
financial statements for the year ended 31 December 2014.
4 Going Concern
After making enquiries, considering the net cash available at
the reporting date and considering the projections in the Group's
2015 budget and five year plan, the Directors consider that the
Company has adequate resources to continue operating for the
foreseeable future. For this reason they have continued to adopt
the going concern basis in preparing the financial statements.
5 Seasonality
Due to the seasonal nature of the airline industry, higher
revenues and operating profits are usually expected in the second
half of the year than in the first six months. Cash balances are
also generally higher in the first half of the year as customers'
book and pay for their flights in advance of travel in the peak
summer months. Higher volumes for the period June to August are
mainly attributable to the increased demand for air travel during
the peak holiday season.
In light of the impact of seasonality on the Group's statement
of financial position, the Group has presented the statement of
financial position as at 30 June 2014 as an additional comparative,
as encouraged by IAS 34. The Group has also presented the
comparative notes as at 30 June 2014 for trade and other
receivables, trade and other payables and gross cash, these being
the balances which are most impacted by seasonality.
6 Revenue
Six months ended 30
June
2015 2014
EUR'000 EUR'000
Passenger revenue 606,314 563,046
Retail revenue 94,488 90,366
Cargo revenue 25,706 21,643
Other revenue 22,448 22,143
------------------ ---------- ---------
748,956 697,198
------------------ ---------- ---------
7 Segment information
Based on the way the Group manages its network and the manner in
which resource allocation decisions are made, the Group considers
that its operating segments comprise its routes on which passengers
and cargo are transported. Having assessed the aggregation criteria
contained in IFRS 8, Operating Segments, and considering how the
Group manages its business and allocates resources, the Group has
determined that it has one reportable segment. In particular the
Group is managed as a single business unit that provides air
transportation for passengers and cargo, which allows the Group to
benefit from an integrated revenue pricing and route network. The
Group's flight equipment is deployed through a single route
scheduling system. When making resource allocation decisions, the
chief operating decision maker (the Group CEO) evaluates route
profitability data, which considers passengers flown across the
network, aircraft type and route economics.
Total segment assets exclude investment in joint venture,
deferred tax, loans and receivables, deposits and cash and cash
equivalents, all of which are managed on a central basis. These are
part of the reconciliation to total assets shown in the statement
of financial position.
The chief operating decision maker assesses operating segment
performance based on a measure of adjusted operating profit before
net exceptional items. This measure excludes, for example,
franchise results, ACMI contract flying business, and post close
adjustments arising from the finalisation of the financial
statements. Finance income and expense and share of result of joint
venture, are not included in the segmental results reviewed by the
chief operating decision maker.
A reconciliation of the reportable segment's operating result as
reviewed by the chief operating decision maker to the Group's
results as reported in the Income Statement is as follows:
Six months ended 30 June
2015 2014
EUR'000 EUR'000
Adjusted operating loss before net
exceptional items for the reportable
segment (23,814) (16,604)
Miscellaneous group level adjustments 9,892 6,749
-------------------------------------------- ------------ --------------
Adjusted operating loss after miscellaneous
group level adjustments (13,922) (9,855)
Net exceptional items 431 (2,471)
-------------------------------------------- ------------ --------------
Operating loss after net exceptional
items (13,491) (12,326)
Finance income 4,076 5,153
Finance expense (5,741) (7,214)
Share of profit of joint venture 341 245
-------------------------------------------- ------------ --------------
Loss before income tax (14,815) (14,142)
-------------------------------------------- ------------ --------------
Substantially all of the Group's non-current assets are located
in Ireland. The reportable segment's assets are reconciled to total
assets as follows:
As at 30 June As at 31 December
2015 2014
EUR'000 EUR'000
Total segment assets 848,667 829,862
Investments in joint venture 17,250 15,788
Loans and receivables - 13,770
Deposits 718,827 537,429
Restricted deposit - pension escrow 55,566 190,700
Cash and cash equivalents 238,691 193,769
Deferred tax asset 18,146 22,950
---------------------------------------- ------------- -----------------
Total assets per statement of financial
position 1,897,147 1,804,268
---------------------------------------- ------------- -----------------
8 Other gains/(losses) - net
Six months ended 30 June
2015 2014
EUR'000 EUR'000
Net realised gains/(losses) on forward
foreign currency contracts 1,544 (1,635)
Net foreign exchange realised losses
gains on operating activities 4,226 680
Net foreign exchange unrealised gains/(
losses) on operating activities 2,872 (135)
---------------------------------------- ------------ ------------
Other gains/(losses) - net 8,642 (1,090)
---------------------------------------- ------------ ------------
9 Net exceptional items
Exceptional items are material, non-recurring items that derive
from events or transactions that fall within the ordinary
activities of the Group and which individually or, if of a similar
type, in aggregate, are separately disclosed by virtue of their
size or incidence. The separate reporting of exceptional items
helps provide a more useful picture of the Group's underlying
performance. An analysis of the amounts presented as exceptional
items in these financial statements is given below.
Six months ended 30 June
Exceptional items comprise: 2015 2014
EUR'000 EUR'000
Termination and restructuring costs
(a) (7,892) (620)
Professional and legal fees (b) (4,315) (1,851)
Post retirement income streaming (c) 11,340 -
Profit on disposal of Investment (d) 1,298 -
------------------------------------- -------------- --------------
431 (2,471)
------------------------------------- -------------- --------------
(a) Termination and restructuring costs
The debit of EUR7.9 million in the period (2014: debit of EUR0.6
million) relates to termination and restructuring costs. EUR7.5
million of this balance relates to the voluntary severance
programmes, specifically, an amount of EUR0.2m relates to a
voluntary severance scheme launched during 2013 and an amount of
EUR7.3m relates to a voluntary severance scheme launched during
2015. The other EUR0.4 million relates to restructuring costs.
2013 Voluntary severance scheme
On 25 April 2013, Aer Lingus launched a voluntary severance
programme for applicants who satisfied certain selection criteria.
As at 31 December 2014, 137 applicants had been accepted and had
left employment with Aer Lingus. A further 2 applicants had
formally agreed to participate in the programme and leave
employment with Aer Lingus during 2015.
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