Kerry Airport announce 425% profits increase

PRE-TAX profits at Kerry Airport increased by 425% in 2002 as cash reserves hit €2.3 million and the company is on target to make even bigger profits in the current year.

Pre-tax profits at Kerry Airport plc for the year ending October 2002 were €257,261, a €208,512 improvement on profits in 2001.

However, company chairman Denis Cregan told shareholders it is regrettable that the board does not intend to pay a dividend in the current year despite earnings per share of 51.81 cents.

“The need to retain earnings within the company for future development is critical to the medium and long-term viability of the business,” he told shareholders in the company’s annual report, circulated to shareholders yesterday.

Mr Cregan said an extra €8 million has to be invested in airport facilities, including the arrivals hall, car parking, security and landing instrumentation over the next four years to cater for projected passenger growth. It is expected more than 200,000 passengers will travel through the airport this year.

Mr Cregan said the switching by Ryanair to Kerry from Shannon of a route to Frankfurt-Hann was not a row between the respective airports but the re-establishment of a traditional Kerry-German air-link initiated by Aer Lingus.

“Shannon Airport and its viability is of major importance to the Kerry economy and the south west region and we are fully supportive of its position as a vital access from the western markets,” he said.

Mr Cregan said Kerry Airport and Ryanair have resolved their differences over the company’s airport development fee imposed on outgoing passengers and have entered into a 10-year agreement on the route to London Stansted.