Aer Lingus expects to post full-year operating profit at the upper end of market forecasts but warned its fourth quarter would be weaker than last year due to high fuel and airport charges.
The airline posted an operating profit of €94.5 million in the three months through September, up 14 per cent on a year ago, as cost cutting and ancillary sales balanced increased costs.
Three analysts had on average forecast a full-year operating profit of €36.7 million after the airline posted a first-half operating loss of €27.8 million.
Aer Lingus shares have fallen 37 per cent since the start of the year compared with a fall of 8 per cent in the broader Irish market, due in part to concern about its large pension obligations.
Rival Ryanair , which has a lower cost base and less exposure to the Irish market, has lost 12 per cent.
Aer Lingus said in its statement there had been no developments in talks over the pension deficit.
Passenger numbers were up 2.1 per cent in the third quarter compared with a year ago, while yields - the keenly watched measure showing average revenue gained per mile per passenger - were up 4 per cent.
Retail sales to passengers were up 6.1 percent.
Aer Lingus has 47 per cent of its 2012 fuel needs hedged at $975 per tonne and 84 per cent of its fourth-quarter needs hedged at $921, the statement said.