PROFITS AT Dublin-based airline CityJet, which is wholly owned by Air France-KLM, soared by 8.3 per cent to €23.5 million in the year to the end of March, according to accounts just filed.
Revenues rose by 7.8 per cent last year to €261 million.
Chief executive Geoffrey O'Byrne-White said turnover in the year to the end of March 2008 was forecast to hit €270 million, a rise of about 3.5 per cent.
Mr O'Byrne-White said passenger numbers had been affected by the economic slowdown and weather disruptions, with traffic down about 5 per cent since the start of this year.
Mr O'Byrne-White said the airline had an "awful" February at London City Airport, its main base of operation, due to disruptions caused by fog and strong winds.
He acknowledged that the high price of oil would affect CityJet's costs but said it would not introduce a fuel surcharge.
CityJet is in the process of acquiring Belgium-based regional airline VLM for an undisclosed sum.
VLM also operates from London City Airport and the deal is subject to the approval of the UK's Office of Fair Trading.
A ruling is not expected until June.
"We are in a very major transition," Mr O'Byrne-White said.
"We will go from being a hub operation for Air France to setting up our own network in London City [ Airport]. That will take us about three years to complete."
CityJet's accumulated profits stood at €37.3 million at the end of March 2007, more than double the level of a year earlier.
Last year's results show that income from scheduled flights rose to €251.7 million from €234.6 million.
The balance of its turnover came from "contract lift" operations and from cargo and duty-free sales, which declined by 14.7 per cent to €1.2 million.
Ireland accounted for 12 per cent of CityJet's income, a similar level to the UK.
The rest of Europe brought in 75 per cent of its sales.
CityJet operated 23 aircraft last year and employed 612 staff.
Its payroll costs rose to €27.2 million from €23.9 million, while directors' fees and emoluments increased by 7.4 per cent to €382,129.
CityJet had loans of €37.6 million from Air France-KLM at the end of March 2007.
