Dublin Airport Authority says it may be forced to cut jobs across the three airports as part of a cost-saving programme to save €25 million.
The authority made the announcement as it reported a 28% drop in profits for 2008 and predicted passenger numbers would fall by 11% this year – the first drop since 1991.
The DAA said it would engage with staff and staff representatives to discuss the options available to staff, which may also include pay cuts or changes in conditions.
3,200 people are employed across Dublin, Cork and Shannon airports.
The DAA also said it is seeking a €3 increase in the passenger charge from the Civil Aviation Regulator.
The DAA’s profits for last year after tax were €78m, down 28% from 2007. This figure did not include a once-off loss of €31m linked to pensions. After once-off items were included, profits fell from €348m in 2007 to €47m. Turnover was up 1% at €631m.
Total passenger numbers at DAA's three airports were 29.9 million, a fall of 0.6%. The DAA is expecting a further fall of around 11% to 26.6 million this year, due to weak economic conditions at home and abroad and lower airline capacity.
It expects its airport business to be loss-making this year, with the situation worsening in 2010. It says it is introducing cost saving measures and cutting capital spending, but warns the decision of the Commission for Aviation Regulation on airport charges later this year will be crucial. The DAA says it is looking for a 'more appropriate' price cap.
The company expects passenger numbers at Dublin to fall from last year's 23.5 million to around 21 million. It adds that the downturn is also leading to a 'marked decline' in retail and car park business at Irish airports.
Aer Rianta International, which manages the group's overseas investments, contributed €25m to profits. This was down 13% on 2007, but was affected by the sale of its 24% stake in Birmingham Airport that year.
