Operating profits at the company which operates Ireland West Airport Knock last year increased by 9 per cent to €2.02 million.
New accounts show that revenues at Connaught Airport Development Co Ltd rose by six per cent from €17.93 million to €19 million last year in the busiest year to date for the airport.
The directors state that passenger numbers reached 818,000 for the first time in the airport’s history, surpassing the previous record of 807,000 passengers achieved in 2019.
They state: “This is great news for tourism and job creation, both at the airport and in the wider economy.”
The company recorded pre-tax profits of €1.87 million after taking interest charges of €144,974 into account.
The directors state that “the airport was pleased to see a strong performance in revenue terms with a turnover of €19m, as a result of all its main commercial income streams performing strongly”.
Revenues were boosted by the airport launching new services to both Lanzarote and Tenerife with Ryanair, and for the first time launching a new daily service with Aer Lingus, to one of Europe’s major international airport hubs, London Heathrow.
The directors add: “However, cost containment measures have continued to be very challenging with significant increases in fuel, electricity, energy, insurance and other utility costs, combined with continued upward inflationary pressures and wage cost increases.
On the projections for 2024, the directors state that due to the challenging economic situation and the high level of volatility in geopolitics and war in Ukraine, the airport is forecasting that passenger numbers for 2024 will be on par with what was a record 2023 year and achieve numbers close to 820,000 for the year.
On the revenue forecast for 2024, the directors state that they are expected to be in the region of €20 million, “however the airport is forecasting a pre-tax loss prior to receipt of Government funding, due to the cost pressures highlighted”.
On further investment at the airport in 2023, the directors state that Ireland West Airport completed capital projects to a value of €5.9 million with €4.6 million of this government funding and the balance funded directly from the airport.
The directors state that the projects completed included the installation of two central search security machines, an additional fire tender, a fire station extension, phase 2 of the electrical project upgrade and works to the runway end safety area.
In addition, the airport reopened the Slainte restaurant as a barista coffee outlet in May and completed retail and car park upgrades.
This year, the company is continuing its plan to maintain and improve critical safety and security infrastructure and plans to invest close to €7 million.
On the uncertainties facing the airport firm, the directors note the reliance on a limited number of airlines for the passenger traffic in the current economic climate.
They state that the Airport is continuing in its endeavours to both expand its current business with its incumbent airline partners and attract new airlines and services to the airport.
The company’s pre-tax profit also takes account of non-cash depreciation and impairment costs of €3.19 million.
The profit also includes other operating income of €4.26 million that is made up of Government grant funding of €1.86 million under the
Regional Airport Programme, capital grants of €2.39 million.
Numbers employed by the airport firm last year increased from 124 to 148 as staff costs rose from €5.75 million to €6.97 million.
Directors’ pay totalled €226,446 made up of remuneration of €189,013 and pension contributions of €37,433.
A breakdown of the firm’s revenues show that it recorded aeronautical revenues of €8.19m, commercial revenues of €10.8 million and ‘other sales’ of €47,500.
At the end of last year, the airport firm had shareholder funds of €11.67 million that included accumulated profits of €7.8 million. The company’s cash funds rose from €9.69 million to €10.19 million.
