Drop in passenger numbers at Kerry Airport

KERRY Airport had a 6% drop in out-going passengers for the eight months to the end of June, the company’s chairman Denis Cregan told its annual general meeting yesterday.

As the effects of the recession become apparent, he said the company was about 11% down on budget expectations but still in a reasonably healthy state.

“The storm clouds are gathering and I would not like to see passenger numbers deteriorate much more,” Mr Cregan cautioned, but he was confident the airport would by the end of the year exceed last year’s operating profit.

Expressing disappointment at a decision by Aer Arann to drop a Kerry to Manchester service, he told shareholders the airport company was in discussions with Ryanair with a view to restoring a service on the route.

According to its annual report and accounts for the year ended October 31 2008, the profit for Kerry Airport plc was €327,541, down from €565,809 the previous year, but passenger numbers went up from 387,943 to 419,114, – an 8% increase – in the same period.

Shareholders have never been paid a dividend and there were calls at the meeting for “some recognition” of shareholders, with a suggestion they should be given parking vouchers for the airport.

Mr Cregan said it had probably been a prudent policy to retain all profits for reinvesting in the airport, and that it might not be in such a strong position financially if it had to borrow at present.

“The possibility of paying a dividend now is more remote than last year,” admitted Mr Cregan, who added the board would look at other ways of recognising shareholders.

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. The airport had been due to receive a €17m grant.