The Irish Aviation Authority (IAA) last year returned to profit as it benefited from the easing of international air travel restrictions.
That is according to the 2021 annual report for the IAA which shows that the IAA last year recorded a pre-tax profit of €11.37 million after recording a pre-tax loss of €164,000 in 2020.
The report shows that revenues at IAA last year increased by 4% from €155.5 million to €162.5 million.
The IAA's profits and revenues rebounded after overflight air traffic increased by 22% to 188,400 but still 46% down on pre-Covid 2019.
Similarly, the number of North Atlantic flights handled by IAA totaled 263,200 was 24% up on 2020 but down 48% on 2019.
The IAA enjoyed an operating profit of €7 million and profits were boosted by 'other income’ of €5.35 million which is made up of Government Covid-19 wage supports.
In her report, chairwoman of IAA, Ms Rose Hynes has stated that "following two difficult years when air traffic levels fell by, on average, 54% of 2019 levels due to COVID-19, there is industry-wide optimism for a much improved 2022".
On the IAA response to the Covid-19, Ms Hynes stated that in 2021, the IAA handled 50% fewer flights when compared with activity in 2019 resulting in a similar reduction in our cash receipts.
She stated: "In order to preserve liquidity we continued with our cost containment programme."
Ms Hynes stated that the company's cost base, taking into account Government supports, was 11% lower than in 2019 and only essential capital expenditure was undertaken.
Ms Hynes stated that "the Company will continue to monitor its cost base as the focus shifts to a return to normal operations and a sustainable recovery for both the company and the wider aviation industry notwithstanding the ongoing significant threats to aviation".
In his report, chief executive, Peter Kearney claimed that the return of aviation from July last year onwards "proved a boost to both the morale of the Company and a tentative improvement in our financial position".
"Reflective of the recovery, we were in a position to conclude the majority of cost containment mechanisms before the end of the year," he said.
"However, cost discipline and careful budgetary control must remain a key feature of our business management for years to come."
Mr Kearney said that IAA cash reserves reduced by €99 million over the two years 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 IAA last year reduced from 725 to 714 and staff costs reduced from €90.7 million to €87.4 million.
The €87.4 million cost includes the €1.4 million cost of a voluntary severance and early retirement where nine members availed of the scheme and left the IAA in May 2021.
The average payout to each of the nine was €155,661.
The IAA last year received €5.4 million of the Government Covid-19 Employment Wage Subsidy Scheme (EWSS) and deregistered its interest in the Scheme with effect from December 24th 2021.
Last year 302 staff last year earned more than €100,000 or 42% of the 714 staff at the IAA.
Two earned more than €175,000 with nine earning between €150,000 and €175,000 with 42 in the €125,000 to €150,000 salary bracket.
Two hundred and forty nine staff earned between €100,000 and €125,000.
Mr Kearney’s total remuneration package totaled €292,000 for the year made up of basic pay of €205,000, €73,000 in pension contributions and other taxable benefit of €14,000.
Mr Kearney’s basic salary is €225,000 and his salary was cut during Covid-19 as part of company wide cuts.
A note attached to the accounts states that Mr Kearney's pay was restored, along with all other employees, on November 26th 2021.
According to the directors for IAA, 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.
