IAA posts pretax profit of €11.37m for 2021

The Irish Aviation Authority (IAA) last year returned to profit following the easing of international air travel restrictions. It recorded a pretax profit of €11.37 million after a pretax loss of €164,000 in 2020.

The company’s 2021 annual report shows that revenue increased by 4 per cent from €155.5 million to €162.5 million.

The IAA enjoyed an operating profit of €7 million and profits were boosted by “other income” of €5.35 million, made up of Government Covid-19 wage supports.

Rose Hynes, chairwoman of IAA, said in her report that “following two difficult years when air traffic levels fell by, on average, 54 per cent of 2019 levels due to Covid-19, there is industry-wide optimism for a much improved 2022″.

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On the IAA response to Covid-19, Ms Hynes said in 2021 the authority handled 50 per cent fewer flights when compared to activity in 2019 resulting in a similar reduction in cash receipts.

“In order to preserve liquidity we continued with our cost containment programme,” she said.

In his report, chief executive Peter Kearney said the company was “in a position to conclude the majority of cost containment mechanisms before the end of the year”.

Mr Kearney said that IAA cash reserves reduced by €99 million over 2020 and 2021 in response to Covid-19.

“This decrease would have been more severe if cost containment measures had not been implemented. Cost containment in 2020 and 2021 was a necessary component of our strategy to manage our way through the crisis and secure the future of the company,” he said.

Numbers employed by the IAA last year reduced from 725 to 714 and staff costs reduced from €90.7 million to €87.4 million.

The €87.4 million costs include €1.4 million on a voluntary severance and early retirement scheme. Nine employees availed of the scheme and left the IAA in May 2021. The average payout to each of the nine was €155,661.

Last year 302 staff at IAA (42 per cent) earned more than €100,000 .

Mr Kearney’s total remuneration package came €292,000 for the year, made up of basic pay of €205,000, €73,000 in pension contributions and other taxable benefits of €14,000.

Directors for IAA said the group and company balance sheets are strong and group net assets increased by €57.4 million in the year to €260.4 million after booking a €50 million gain of its net defined pension liability.