Cork Airport losses set for E6m

Cork Airport is hopeful of breaking even by the end of 2014, despite showing no real improvement in losses last year.

While the airport’s owner, the Dublin Airport Authority (DAA), does not break out financial figures for its individual airports, it is thought that Cork made a cash loss — before depreciation — of around €6m last year.

The DAA previously said cumulative cash losses — excluding depreciation — amounted to €12m over 2010 and 2011, and it is understood that no major improvement was seen last year.

Speaking yesterday at the publication of the DAA’s annual report, CEO Kevin Toland said a business improvement plan for Cork Airport is under way and progress will be made on the asset over time.

The DAA said in October it would be reviewing existing work structures at Cork, claiming changes would be required in order for sustainable future growth to be achievable. A mix of 30 redundancies, further cost reductions, changes in work practices, and an increase in non-aeronautical revenues should see the airport break even by the end of next year.

Approximately €4m is to be cut from labour costs, it is understood.

On a group-wide basis, the DAA generated pre- tax profits of just over €85.6m in 2012 — down by around 7% on the previous year. Group turnover increased from €558.1m to €574.6m.

Passenger numbers rose by 2% to 19.1m at Dublin Airport; while numbers dipped by 1% to 2.3m at Cork — although international traffic did rise by 1% there, during the year.

The Aer Rianta overseas division — which operates international duty free shops and has a stake in Dusseldorf Airport — generated sales growth of 5% and a profit of €27.4m; opening its first outlet in China and winning preferred bidder status for the main duty free concession at the new terminal at Mumbai Airport, which should be operating by early next year.

Group net debt was reduced by 8% — or €60m — to €675m, with 85% of the remaining figure not due to mature for another five years. Mr Toland said the 2012 figures represented a resilient and solid performance for the DAA, and that a solid start to 2013 had been made against a continually difficult background.

Geoff Percival Irish Examiner