Belfast International Airport is losing large numbers of potential passengers to Aer Rianta because of a combination of lower departure taxes and the strength of sterling, according to the UK airport operator, TBI.
Ms Caroline Price, financial director of TBI, said the group's latest end-of-year results showed that Belfast had contributed more than £18 million sterling (#29.6million) of operating profits last year. But there was evidence that it had lost potential passengers to Dublin airport.
The group, which is the seventh largest airports operator in the UK, yesterday delivered better than expected pre-tax profits of £19.3 million (#31.7 million) for the year to March 31st.
TBI, which is quoted on the London Stock Exchange, operates and manages airports from Belfast to Bolivia; it owns Cardiff International Airport and has a majority stake in Luton Airport, Easyjet's key airport in the UK. It operates airports in Stockholm in Sweden and Orlando in the US and has interests in Costa Rica and Canada.
The latest results reflect TBI's first full year as pure airport operator; it had previously combined its property interests with a smaller airport portfolio.
According to Ms Price increased passenger numbers and a strong performance from the group's retail outlets in various airports helped deliver a year on year increase of more than £1 million in pre-tax profits for the group. She said the group expected passenger numbers in the North to increase despite the competitive threat it faced from Aer Rianta.
"Dublin International Airport has a natural advantage over Belfast International Airport because it has a lower rate of airport departure tax compared to taxes in the UK. We also have the sterling/punt ratio to consider but we are working very hard to overcome these issues.
"We have definitely seen evidence this year of a large amount of people in our potential catchment area who are prepared to travel to Dublin to use the airport," Ms Price added.
She said TBI views Dublin airport as its key competitor on the island and does not see the recently opened Belfast City Airport as a major contender for its business.
Ms Price said Belfast International Airport had experienced a slight downturn due to foot-and-mouth disease but she was confident that the situation was now back to normal.
