Kerry Airport profit down 16%

KERRY AIRPORT will be looking closely at its cost base as the company’s operating profit for 2008 is down 16% on the previous year.

According to its annual report and accounts for the year ended October 31, 2008, the profit for the airport’s operations was €263,557 on a throughput of 419,114 passengers.

Final profit after taxation was €327,541, down from €565,809 in the previous year.

The report also showed passenger numbers up 8% on the previous year to 419,114, due to a newLuton service and revenue up 6.7% to €6,975,565.

Overhead costs are up 13% in the period.

Kerry Airport chairman Denis Cregan said growth in traffic was encouraging, considering the global economic events of 2008.

“We are continuing to work closely with the airlines to improve our current services and improve the level of service for our customers,” he added.

“Profit levels are less than those targeted and of particular concern is our cost base continues to expand at rates greater than our revenue growth which is unsustainable and will require action.”

It is understood costareas being looked atinclude maintenance contracts, energy and wages.

The airport has scheduled daily services to Dublin and London (Stansted and Luton). There are also services to Frankfurt/Hahn and Grenoble.

A €23 million expansion plan, which would enable the airport to more than double its current passenger capacity, has been shelved due to government budgetary cutbacks.

Last year, the Government committed €18m to the development, with the balance of €5m to come from the airport company.