Passenger numbers at Kerry Airport rose by almost 100,000 last year as its revenue topped the €6 million mark for the first time, according to accounts published yesterday.

Gross revenue for the year reached €6.4 million, an increase of almost €1 million on the previous year, while operating profits jumped by over 50 per cent to €385,000 from €252,000.

Most of the improved revenue performance came from fuel and the airport shop, and development fees. Revenue from aircraft operations rose just 3 per cent.

The airport's Stansted, Frankfurt and Manchester routes drove the 30 per cent increase in passenger numbers to 376,000, spokesman Peter Bellew said.

He confirmed the airport was negotiating a second route to Germany with Ryanair for 2006. He said passenger numbers through Kerry had more than doubled between 2002 and 2004.

Passenger growth on the Dublin route grew last year by 8 per cent. The domestic route now accounts for less than one-third of the numbers through the airport. Under the PSO contract, Aer Arann operates three daily return flights during weekdays. It also operates a fourth flight due to demand.

The airport recently announced capital investment plans of almost €1 million for a new coach park and additional safety and fire-fighting measures.

Airport chairman Denis Cregan said expenditure was now required for the development of the arrivals area. The airport continued to look for realistic grant aid to part-finance the improved luggage and other arrivals facilities, he said.

Last year, gross capital expenditure for improvements amounted to €921,352, of which just over half was Government grant aid. The rest was invested by the company. "The significant issue is the rate of grant aid in the period putting greater demand for self-generated funds. This expenditure level is likely to continue for a number of years and underpins the requirement for company-generated cash," Mr Cregan said.