Shannon Airport profits take off as revenue rises

Pre-tax profits at Shannon Airport — in its first year of independence — increased by more than tenfold to €1.62m.

Shannon Airport profits take off as revenue rises

Newly filed accounts by Shannon Airport Authority Ltd show that the airport enjoyed the sharp rise in profits (from €149,000 to €1.62m) as revenues went up by 9.5%, from €39.1m to €42.8m.

The figures show that the airport’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 35% to €4.6m.

Last weekend, the airport enjoyed its busiest weekend since 2010 when it handled 40,000 passengers and the directors’ report attached to the accounts attributes the sharp rise in pre-tax profits to increased passenger numbers “and also a significant non-payroll cost management process completed in 2014”.

Passenger numbers at Shannon last year increased by 17% to 1.64m largely on the back of new Ryanair services and increased capacity on North Atlantic routes.

The directors state that they are satisfied with the financial performance of the company in 2014.

The airport last year incurred €4.4m in capital expenditure that “reflects the continued investment into critical operational maintenance, health and safety, and compliance requirements”.

The firm’s cash reduced from €8.8m to €6.65m and this “largely reflects the early settlement of a lease obligation”.

According to the directors’ report “a number of cost efficiency measures were introduced in 2014 and it is the board’s intention to continue to focus on these in future years, in order to improve on operational profitability”.

The report futher states: “While focusing on growing profits in the coming years, the board has a firm intention to address the historic under-investment in critical airport operational infrastructure and also invest in several facilities which will improve our customers’ experience of travelling through the airport”.

Numbers employed by the airport last year increased by nine from 263 to 272 and staff costs increased from €17m to €18.48m.

Chief executive Neil Pakey received €281,869, though this includes an accrual of €91,875 in respect of pension contributions which have not yet been paid.

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