KERRY AIRPORT’S after-tax profit fell last year by 40 per cent following a steep increase in its overheads.
In a statement released yesterday, Kerry Airport plc said it achieved an after-tax profit of €327,541 in the year to the end of October 2008.
This compared with a surplus of €565,809 in the previous year.
The decline in profits was due in large part to a 13 per cent rise in overhead costs, which climbed to just under €4.9 million last year from just more than €4.3 million in the previous financial period.
Kerry Airport’s underlying business was strong last year. The airport handed 419,114 passengers in the 12 months to the end of October 2008, an 8 per cent rise on the previous year.
This was due to the launch of a new service to Luton by Ryanair, the only airline now serving Kerry Airport.
Revenues rose by 6.7 per cent to €6.9 million. However, its operating profit declined by 16 per cent to €263,557.
Basil Sheerin, Kerry Airport’s financial controller, said the rise in overhead costs was due to increased overtime payments relating to a change in operator for the public service obligation (PSO) route to Dublin, which switched on July 22nd last from Aer Arann to Ryanair.
As Ryanair operates larger aircraft on the service this required Kerry Airport to bulk up some parts of its operation, including ground handling and emergency services.
“There was costs relating to the changeover of the PSO route from Aer Arann to Ryanair,” Mr Sheering said. “But we’ve got a handle on that now and we’re back on track.”
Mr Sheerin said the airport was seeking to reduce its overtime bill this year and to cut other costs across the business.
He said there would be no reduction in its 59-strong workforce, and staff would not be asked to take a pay cut or agree to a pay freeze.
Mr Sheerin said trading had been difficult in recent months.
“It’s been a tough five months for us,” he explained, adding that Aer Arann had pulled off its routes to Manchester and Lorient in France in January. “That was a bit of a blow to us.”
He said the airport hoped to repeat last year’s performance in the current year. “It’s a difficult time; there’s not a lot of excess cash around with passengers and its difficult to get ancillary sales.”
Kerry Airport spent €460,000 on capital expenditure last year funded by the Department of Transport.
