Department to review Kerry Airport's €306,000 market investment loss

The Department of Transport is to review a loss of almost €306,000 made by Kerry Airport on a soured market investment as part of the airport’s current application for new funds.

The Department of Transport is to review a loss of almost €306,000 made by Kerry Airport on a soured market investment as part of the airport’s current application for new funds, but said it "is not in the business" of covering losses from poor investment or commercial decisions.

The Irish Examiner has reported that privately-run Kerry Airport will book the loss as part of an unusual €1.5m investment it took on an investment bond, which went disastrously wrong when markets crashed at the onset of the Covid-19 crisis in March.

The market loss will add to the already significant deficit facing Kerry Airport this year as passenger revenues collapsed due to the pandemic. Last week, the airport announced it was laying off around half of its staff on a temporary basis to help stem further losses.

The airport is a private company, but has so far this year received €1.2m in public grants from the Department of Transport.

In a reply to questions put by the Irish Examiner, a spokesperson for the Department of Transport said the airport had submitted information on the investment loss last month "as part of this year's application for operational funding under the Regional Airports Programme".

"As part of the process to assess applications, the financial position and accounts of all eligible airports are currently being reviewed with the assistance of the department’s financial adviser," said the spokesperson. "The issue of Kerry’s investment will be considered as part of that review.

"While the department is committed to helping Ireland’s airports through the Covid crisis, it is not in the business of covering economic losses relating to poor investment/commercial decisions."

Kerry Airport has told the Irish Examiner the investment was bought and managed by a bank, and the losses were made after markets collapsed in March.

It will not comment on the identity of the bank and the specific underlying assets that triggered the investment losses.