Knock loss despite rise in passengers

Despite a milestone year that saw the airport enjoy record passenger numbers, the company that operates Ireland West Airport Knock last year recorded a pre-tax loss of €627,195 before government subvention.

Connaught Airport Development Co Ltd recorded the pre-tax loss despite passenger numbers increasing 5% to 686,000.

After the state funding, the airport recorded a modest post-tax loss of €34,788 compared to a post-tax loss of €390,134 in 2011, as revenues increased 12% from €12.5m to €13.9m in the 12 months to the end of December last.

The Government last year cut the airport’s associated Public Service Obligation (PSO) income. The directors state that the “airport continued to implement cost reduction and efficiency measures to help offset some of the loss of the PSO income”.

The directors state that “although aviation income decreased, mainly due to the loss of PSO income, a significant increase in fuel sales helped overall turnover levels. As a consequence, gross profit margins reduced from 60% in 2011 to 53% in 2012”.

The airport now serves 28 destinations, 20 of which are scheduled services.

A spokesman said yesterday: “Passenger numbers in 2013 are expected to be close to 2012 levels with over 670,000 passengers in particular from the UK and mainland Europe markets.”

A consultants’ report examining options for the development of the airport is due to be lodged with the Government later this month.

The spokesman said that the “airport is expecting positive developments in regard to the future growth plans for the airport and support from Government in that regard”.

The directors’ report states that “the airport continues to pursue its balanced brand strategy in regard to airlines using the airport and despite the continued volatility in the aviation sector and the consolidation of carriers across Europe, Ireland West Airport Knock currently has five carriers.”

The loss last year took account of non-cash depreciation charge of €1.63m.

The firm increased its aeronautical revenues from €7.4m to €8.6m along with commercial activities increasing from €5.1m to €5.2m.

The firm’s staff costs last year increased from €4.33m to €4.52m with directors’ emoluments increasing from €184,201 to €211,562. The numbers employed rose from 100 to 102.

The firm had shareholder funds totalling €2.19m that included cash of €2m.

The loss last year takes account of interest charges of €373,847.