AER Lingus staged a strong recovery last year, posting a €45m operating profit as revenues surged on the back of a return of passenger travel following the pandemic.

The operating profit in 2022 compared to a pre-exceptional €347m loss in 2021.

Revenue in 2022 hit close to €1.8bn, compared to the €367m it recorded the previous year.

The airline, part of the IAG group that also owns carriers including British Airways, Iberia and Vueling, relaunched a number of services to the United States last year amid demand recovery.

In the current quarter, Aer Lingus expects to operate 103pc of its 2019 capacity. For the whole of 2023, its available seat kilometres – an industry measure of capacity - will be 105pc of the 2019 figure.

Aer Lingus, whose chief executive is Lynne Embleton, said that leisure travel has been key to its recovery, particularly in the peak holiday periods. It added that business travel is also recovering, but at a slower pace.

“There has been high market demand for European sun destinations and North Atlantic routes, with notable strength in inbound US passengers,” it noted. “The new Aer Lingus Manchester base also performed well in its first full year of operations.”

The carrier said there is “much to build on” in 2023 despite global macro-economic uncertainties that have resulted in higher oil prices, exchange rate fluctuations, rising interest rates and inflation.

Aer Lingus’ passenger revenue of €420m in the final quarter of 2022 was 8pc below the figure recorded in the last three months of 2019. Total revenue, including cargo, in the last quarter of €442m, was 6pc lower than in the final quarter of 2023.

IAG said it saw a strong recovery last year in its core markets as restrictions were lifted.

It expects to generate a full-year operating profit in 2023 of between €1.8bn and €2.3bn, before exceptional items.

Its total revenue in 2022 jumped to €23bn from just under €8.5bn in 2021. It made a €431m profit after tax last year, compared to a €2.9bn loss in 2021.

“At this point of the year we continue to see robust forward-bookings, while also remaining conscious of global macro-economic uncertainties,” said IAG chief executive Luis Gallego.

“We are transforming our businesses, with the intention of returning IAG to pre-covid levels of profit within the next few years, through major initiatives to improve customer experience and operational performance,” he added.

IAG also announced on Thursday that it has agreed to fully acquire Spanish carrier Air Europa.

It will buy the remaining 80pc of the carrier that it doesn’t already own for €400m, including €200m upon closing that will comprise of €100m in IAG shares and €100m cash, followed by a further €100m payable in cash on each of the first and second anniversaries of closing.