DAA, which operates Dublin and Cork airports and has businesses in 15 overseas markets, recorded a loss of €284m in 2020 as airports throughput was decimated due to Covid travel restrictions.
Passenger numbers at the company’s two Irish airports fell by 78% to just 7.9 million in 2020, compared to 35.5 million in 2019. Almost all of the airport retail outlets that DAA operates in Ireland and overseas were closed for extended periods during the year.
Turnover declined by 69% €291m.
Chief executive Dalton Philips (pictured) commented. “Dublin and Cork airports lost 27.6 million passengers last year. The last time these airports had fewer than 8 million passengers in a calendar year was in 1994.”
In the first three months of 2021, passenger numbers at Dublin and Cork airports have fallen by 92% compared to 2020.
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Philips added that as vaccination levels increase, both at home and in many of our key overseas travel markets, Ireland must develop a roadmap for exiting mandatory hotel quarantine and for easing the blanket restrictions on overseas travel.
“The aviation industry in Ireland has recently submitted a comprehensive plan to enable the restart of international air travel to and from Ireland in a manner that continues to protect public health. Having outlined our recommendations, the industry needs substantive Government engagement on this vital issue. Ireland must start planning now for putting in place a system that will allow for international travel again,” said Philips
“There is clearly huge pent up demand for travel, particularly to visit family and friends, but as yet, we have no clear path as to how and when Ireland will exit the current restrictions. We also need clarity on the EU Digital Green Certificate and when it will be adopted in Ireland.”
DAA says that almost 1,000 Irish-based staff have left the business, which is equivalent to almost one-third of the group’s overall workforce in Ireland. About 1,000 people have also been laid off across the overseas retail businesses operated by the group.
“We had to take some very difficult decisions over the past 13 months, and we had to move quickly given the severity of the crisis,” said Philips.
To fund operating losses and restructuring costs, an existing revolving credit facility was increased from €300m to €450m and its maturity was extended to March 2026. The company also drew down a €350m loan from the European Investment Bank, repayable over 20 years, and last October DAA raised €500m million from a 1.6% coupon bond issue, repayable in November 2032. Through 2020, net debt increased by €350m to €780m at the end of December.
DAA also runs Terminal 5 at King Khalid International Airport in Riyadh and also has investments in Düsseldorf Airport in Germany and in Larnaca and Paphos airports in Cyprus. The retail business Aer Rianta International (ARI) has outlets in 14 countries.
