Dublin-based CityJet reports loss of €16.8m in 2023
Troubled Dublin-based CityJet made a loss of €16.8 million in 2023 following a surge in operating expenses.
The regional airline, which was once Ireland's third carrier after Aer Lingus and Ryanair, filed accounts for the year ended December 31st on Friday.
They show operating expenses grew to almost €97 million from just under €80 million in 2022.
At the same time, turnover came down from €131 million to €129 million mainly as a result of lower flying activities during the year.
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The group had been in profit at the end of the previous 12 month period, when it made €4.7 million.
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Cityjet booked exceptional gain of €163m from examinership
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The main activities of the company, which was once best known for flying routes out of London City Airport, include aircraft, crew, maintenance and insurance, as well as wet leasing, where it provides serviced aircraft and crews to operate routes for other carriers.
At the end of the year it had net liabilities of €35.6 million.
The company has not operated any scheduled flights under its own name since 2018, and its difficulties have continued since then.
The
High Court appointed Kieran Wallace and Andrew O'Leary of Interpath Advisory Ireland
as interim examiners in recent weeks, which was the third time the airline has sought protection from creditors since its inception.
It survived one process in 1996 and again in 2020 after its fleet was grounded by the Covid pandemic.
Under risks facing the business, it warned in the 2023 accounts that much of its revenue at that time was concentrated on one customer. It noted impending engine overhauls and other redelivery costs due to fall over the following year.
The directors concluded there were material uncertainties that cast 'significant doubt' over its ability to continue as a going concern over the following year.
It also pointed to Russia's invasion of Ukraine and the inflationary pressures brought about as a result.
However, under subsequent events, it said it was able to sign 10 crew, maintenance and insurance lease agreements with various airline customers in June 2024, which would run to October 2028, as well as five other agreements of the same nature that would run to October 2025.
The company also received funding by way of a loan amounting to €3.8 million that is payable in September 2029 and which bears 3 per cent interest per annum.
The group had a tax liability of €160,000 at the end of the year, up from €150,000 a year earlier. It employed 605 people in the year, up from 582. It spent €48.1 million on staff, up from €45.5 million in 2022.
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