Last year Kerry Airport increased profit before tax by 4% to €515,680, but it has warned on higher costs.

Its annual report published today shows that revenues at the airport rose by 6% to €6.91m, with passenger numbers up 2% to 392,960.

In the year there was investment of €804,546 on new car parking/traffic management facilities, navigation aids and fire service equipment.

Chairman, Denis Cregan, said for the year to October 2006 there was 'sound, if unspectacular, progress' in the business.

'Our cost base continues to expand at rates equal to, or greater than, our revenue growth, which is unsustainable and will require action', he warned.

He warned that the loss of Department of Transport Revenue Grant for 2007 will have an impact on financial performance for the coming year.

Among other services, Kerry Airport has daily flights to Dublin; London, Frankfurt Hahn; three times weekly flights  to Manchester; and weekly flights to Lorient France.