Judging by its results for the first half of this year, the passenger cap at Dublin Airport is not affecting the financial performance of State-owned DAA.
The company, which also operates Cork Airport, reported a 10 per cent increase in group turnover to €504.3 million.
Its Ebitda (earnings before interest, tax, depreciation and amortisation) climbed by a healthy 33 per cent to €162.2 million while its after-tax profit soared by 44 per cent to €82.1 million. Amid all this growth, DAA successfully managed to keep the increase in its operating costs to an impressive 2 per cent, at €257.3 million.
‘Hospitality demand is there, but there is no margin anymore’
Some 17.9 million passengers used the two airports in the six-month period, up 5 per cent on a year earlier.
The great Guinness shortage has lessons for Diageo
Ireland has won the corporation tax game for now, but will that last?
Corkman leading €11bn development of Battersea Power Station in London: ‘We’ve created a place to live, work and play’
Elf doors, carriage rides and boat cruises: Christmas in Ireland’s five-star hotels
It’s worth noting that the second half of the year includes the busy summer months of July and August and, of course, the hectic Christmas travel season. So full year 2023 should result in a bumper performance from the airports operator.
And this follows a record year for DAA in 2023, when 36.3 million passengers used its two airports, turnover rose by 35 per cent to just more than €1 billion and its profit after tax was an ear-popping €175 million.
DAA chief executive Kenny Jacobs used the results announcement to issue another warning about the impact of the Dublin Airport passenger cap. “Less seats this winter and next summer is going to result in higher air fares and less choice for the travelling public, unfortunately, until the cap gets resolved by planning permission being granted,” said Jacobs.
He could well be proved right. But it seems DAA has beaten the airlines to the punch in terms of jacking up prices. Among the high-level figures for the first half of the year was an inflation-busting 15 per cent increase in “domestic revenue” to €389.3 million. This is income generated at Dublin and Cork airports, comprising aeronautical revenue, retail, food and beverage concessions, car parks, property rents and the like.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly - Find the latest episode here
