Kerry Airport needs continued Government support

Kerry Airport is heavily dependant on Government Grant aid.

Kerry Airport said it remains in discussions with airlines about new short-haul routes but said any developments were subject to the return of confidence in air travel post-Covid-19.

The airport in Farranfore has seen a huge downturn in traffic due to the collapse in global air travel.

In what is “a remote memory” 2019 was a good year for the airport with passenger numbers of almost 370,000, according to the annual report presented to shareholders in Tralee yesterday.

Chief executive John Mulhern outlined how the 2019 performance was an increase of over 3,000 people on a very strong 2018 for the private regional airport. The airport made a profit of more than €1 million – but only after crediting the receipt of significant grant funding from the Department of Transport, Tourism and Sport.

The routes that performed the best were the subsidised Kerry-Dublin route with over 58,000 passengers and the London–Stansted and London-Luton routes, along with the German Frankfurt-Hahn route.

However, since the pandemic, there has been a huge downturn in traffic and in connections. Ryanair flights alone are halved even since the airport resumed in July.

In accordance with Government guidelines the airport had reduced its activity during the lockdown and was only open for emergency services and the Dublin flight, which is used for health as well as business travel.

An air of uncertainty now surrounds the highly prized airport, according to the document. “The duration and impact of the Covid-19 pandemic, as well as the effectiveness of the Government response, remains unclear at this time,” shareholders were also told.

Only 808 passengers had passed through the airport during the second quarter of 2020 compared to 102,534 in the same period of 2019, according to an earlier statement from the airport.

Manchester and Berlin routes were removed from the autumn schedule by Ryanair while the Kerry to Alicante flights have also ended earlier than anticipated.

Kerry Airport relies on just two airlines – Ryanair for all its international flights, and Stobart Air for the Air Lingus managed PSO flight to Dublin and last year it had been trying to seek extra routes.

Discussions with other UK airlines seeking new short-haul routes out of the UK for 2021 were ongoing - but again subject to the return of confidence in air travel post Covid-19.

It is heavily dependant on Government Grant aid both in capital expenditure and in terms of revenue grants.

“Post Covid-19 there will be an even greater requirement for continued Government support in 2021 and beyond as the airport will incur considerable trading losses as a result of reduced air travel while continuing to bear the significant fixed costs necessary to maintain its aerodrome licence,” the chairman Denis Cregan told the meeting.