Dublin and Cork airports operator daa has reported higher revenues for the six months to the end of June but a drop in its profits after tax as its operating costs rose.
Half year revenues at daa, which also runs Aer Rianta International, were up 6% to €536.1m while its profits after tax and pre-exceptionals dipped 5% to €77.8m.
Its group operating costs rose by 10% to €375.3m as daa said it made further investments in people and technology to raise standards and improve services to its increasing number of passengers.
It said that passenger volumes for the six month period rose by 4% to 18.6 million from 17.9 million the same time last year.
Passenger numbers at Dublin Airport were up 2.7% to 16.96 million, while they increased by 14.4% to 1.645 million at Cork Airport.
The airport operator noted that 96% of passengers processed through Dublin Airport in under 20 minutes, while 99.6% did so at Cork Airport.
Peter Dunne, daa's CFO, said the company delivered 6% top‑line growth to €536.1m with EBITDA of €160.8m, while deliberately stepping up operating spend to enhance service standards through a longer and more sustained summer peak.
"The business has continued to deliver a strong operating cash performance with net debt at €742m after paying a cash dividend of €68m to our shareholder in the period and our liquidity remains strong, supported by a €450m undrawn revolving credit facility," Mr Dunne said.
"The new €288m EIB facility gives us cost‑effective financial firepower for sustainability‑led upgrades and terminal improvements," he said.
Mr Dunne said that like all businesses, daa are facing sustained cost pressures, from energy and regulatory compliance to construction and wage inflation, making it a constant challenge to manage its cost base efficiently while maintaining service standards.
"Dublin Airport’s charges remain among the lowest of major European airports, which is increasingly unsustainable given these pressures and the significant operational and capital investment needed to deliver the standard expected of Ireland’s national gateway and maintain quality across Dublin and Cork," he said.
"As we approach the next regulatory determination, a fair price outcome will be critical to protecting service, resilience and connectivity for passengers and the wider economy," he added.
Kenny Jacobs, daa's CEO, said the company reported a strong first half despite cost pressures.
Mr Jacobs said he was very pleased to see Minister Darragh O’Brien moving to bring legislative options to Cabinet to remove the 32 million cap at Dublin Airport that has held back growth and created uncertainty that the daa, the airlines and the economy do not need.
"We’ll keep working with stakeholders to progress our planning applications with Fingal County Council as we need to add infrastructure to cope with demand and maintain our excellent standards and we will continue to actively engage with the local community as we need their support," he said.
"I am delighted that infrastructure expansion has already started at Cork Airport after a record summer there," he added.
It is understood that an agreement had been reached in principle between Mr Jacobs and the daa board of directors, under which he will leave his role in the new year, pending ministerial approval of the exit package.
This follows a breakdown in relations between Mr Jacobs and members of the board, which is chaired by Basil Geoghegan. It is estimated the exit package would be in the region of €1.2m, given the period of time remaining in Mr Jacobs contract.
The deal will require approval from Minister for Transport Darragh O'Brien and the Minister for Public Expenditure Jack Chambers, which is a process sources said "could take weeks".
