Kenny Jacobs, CEO of DAA, the state-run firm that operates Dublin and Cork airports, has declared that possibly in the autumn, the company may request planning authorities to increase the yearly passenger limit at Dublin Airport from 32 million to 36 million. This proposal would aim to expedite processes to remove the contentious passenger cap.
This information follows the company’s disclosure that last year, it made a profit of €176 million, permitting it to deliver a €31 million dividend to state coffers, the first of its kind since 2019.
The company is already working on a proposal to boost the cap, much to the chagrin of airline companies, to 36 million while Fingal County Council, the planning authority, contemplates a wider draft including an attempt to escalate it to 40 million. Depending on the outcome of a separate procedure by An Bord Pleanála concerning night-time noise and runway usage, DAA might tender that proposal in the autumn.
Mr Jacobs said that traffic congestion, the primary reason for implementing the cap in 2006 when Dublin was granted an additional runway, has been mitigated as 35% of passengers now access the airport terminals via bus, a significant increase from the 5% reported in 2006.
A cap of 36 million would not only accommodate the predicted demand of 35 million for the forthcoming year, but also allay fears of the airlines, who in response to the current cap, are considering alternative options, potentially costing the Republic valuable new routes.
DAA’s larger project to grow the airport’s capabilities includes a bid to raise the limit to 40 million. This could take the Fingal County Council up to two years to decide.
Last year, DAA’s revenue exceeded €1.02 billion, the first time it has hit the €1 billion milestone. Subtracting one-off charges, after-tax profits stood at €176 million, enabling the board to suggest delivering a €31 million dividend to the state. The firm noted that this is the first such dividend since the impact of the Covid pandemic in 2019.
In 2023, over 36 million travellers were managed by Cork and Dublin airports, while the retail division, ARI, advanced in its business operations across the 27 global airports where it’s active. DAA International oversaw 65 million passengers in the Saudi Arabian province at three airports it manages: Jeddah, Riyadh, and Red Sea. This subsidiary also has dealings in the Middle East and other regions.
The year was concluded by DAA’s chief financial officer, Peter Dunne, with a cash reserve of €805 million, despite a debt of €1.6 billion – double the amount before the pandemic. Between 2028 and 2032, the company must settle most of this debt. Dunne uniterrupted that more money will need to be borrowd by the DAA to pay for the infrastructure expansion it envisages.
Basil Geoghegan, the chairman, stated that a stronger financial base is needed for the company to back its planned €2 billion growth of Dublin’s amenitites. He suggested that to achieve this, the returns need to be equal with other European airports. This, he warned, would be a challenge considering that the charges in Dublin are a mere fraction of those in other capital city airports.
In related news, questions are being raised about the legacy of the late Tony O’Reilly – a former rugby player, entrepreneur, and philanthropist.