CIÉ revenue jumps 15% despite rollback of pandemic supports

Growth driven by increase in passenger and commercial revenue and rise in Public Service Obligation (PSO) income

Revenue brought in through school transport services was €34m higher than in 2021 due to the increase in demand following the Government decision to waive school transport fees. Picture: Dan Linehan

State-owned transport company Córas Iompair Éireann (CIÉ) posted a jump in revenues despite the removal of government pandemic supports.

CIÉ, which operates Iarnród Éireann, Bus Éireann, and Dublin Bus services, revenue rose by 15% to €1.5bn last year, according to its annual report.

This growth was driven by the increase in passenger and commercial revenue and an increase in Public Service Obligation (PSO) income, while other State Funding reduced by €71m as temporary government covid-19 supports were rolled back.

“Steady passenger growth throughout the year saw us exceeding pre-pandemic passenger numbers by the end of the year,” said CIÉ Group CEO Lorcan O’Connor.

In 2022, the group transported more than 246 million passengers, up from 149 million in 2021.

Revenue brought in through school transport services was €34m higher than in 2021 due to the increase in demand following the Government's decision to waive school transport fees.

However, CIÉ said this specific increase in revenue brought a proportionate rise in operating costs required to provide this additional service.

Meanwhile, Mr O’Connor said that the company’s benefit pension deficit during 2022 remains a “cloud over the financial stability of the group”.

The group, which currently employs around 11,200 people, recorded a net deficit for the year of €28m partly due to the high cost of providing defined benefit pension arrangements. 

This was still an improvement on the deficit of €53m recorded in 2021.

Ongoing uncertainties

The company continues to monitor ongoing economic uncertainties, including the war in Ukraine, the report said.

CIÉ said the war has increased a number of general business risks, “some of which became business challenges during the year”.

The company added that it has "not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt" on the outlook for the next 12 months.

These challenges included soaring inflation driven in part by a sharp increase in energy costs and risks associated with energy supply.

Overall, "2022 represented a year of recovery from the shock caused by the pandemic," said Mr O'Connor.

"Ireland’s recovery in public transport usage has been one of the fastest experienced around the world," he claimed.