daa plc Reports A Strong Operating Performance In The First Half Of 2023

daa, the operator of Dublin and Cork airports, has reported that passenger numbers recovered strongly in the first six months ended June 30, 2023 with 17.1 million passengers flying in and out of the Republic of Ireland’s two busiest airports. This compares to 13.0 million in the same period last year.

Total Group turnover at daa plc for the six months ended June 30, 2023 was €458.8 million (H1 2022: €295.6 million) an increase of 55%. Improved passenger numbers in the first six months of 2023 versus 2022 contributed to a 57% increase in domestic revenue to €337.1 million (H1 2022: €214.2 million).

Aeronautical revenue increased by 102% to €130.3 million (H1 2022: €64.5 million) and non-aeronautical revenue increased by 38% to €206.8 million (H1 2022: €149.7 million). The increase in aeronautical revenue was driven by increased passenger numbers through both Dublin and Cork airports during the first six months of the year. The increase in non-aeronautical revenue was driven by strong food and beverage sales, retail sales, improved concessionaire revenues and high demand for car parking and lounge facilities given the rebound in post-pandemic international travel from Ireland.

daa’s international retail, consultancy and management business, operated through Aer Rianta International (ARI) and daa International (daaI) also continued to grow in the first half of 2023 with combined revenue of €121.7 million (H1 2022: €81.4 million), an increase of 49% on the same period last year. The rise in revenue in daa’s 24 international retail stores in 13 countries was driven by the combination of increased passenger volumes and increased passenger spends since 2022 for ARI, while daaI’s business generated revenues of €15.7 million in the first 6 months of 2023, an increase of €9.1 million compared to the same period in 2022.

daa’s total operating costs (payroll and materials and services) for the period January to June were €252.6 million, representing an increase of 28% on the same period in 2022 primarily driven by resumption of normal airport operations post-COVID.

Capital investment in the six-month period amounted to €81.3 million (H1 2022: €68.4 million). Investment included critical taxiways and aircraft parking stands on Dublin Airport’s airfield, the completion of a new Hold Baggage Screening facility in Terminal 1, spend on Sustainability initiatives and the deployment of new C3 cabin baggage screening equipment in both terminals at Dublin Airport.

Commenting on the first half of the year financial results, daa CEO, Kenny Jacobs said:

“Dublin Airport facilitated more than 15.8 million passengers in the first 6 months of 2023, an increase of 32% compared to the same period in 2022. Forty-six scheduled passenger airlines, including two new airlines operated at Dublin Airport during the first half of 2023 flying to over 190 destinations.

“There were significant improvements to the overall passenger experience at Dublin Airport in the first half of the year compared to last year and passenger satisfaction ratings are now back to the standards that we routinely delivered pre-COVID.

“Security queue times at Dublin Airport have improved month on month with 92.1% of passengers getting through security in less than 20 minutes between January and June this year.

“Our focus now moves to our Infrastructure Application to meet Ireland’s future demand for international travel which requires us to grow the capacity of Dublin Airport to 40 million passengers per annum and allow for the delivery of critical, required infrastructure enhancements such as new piers, taxiways and other airside facilities.”

Dublin Airport contributes a total of €9.6 billion in gross value added (GVA) to the Irish economy and supports or facilitates 116,100 jobs in the Republic of Ireland and is a vital economic enabler equivalent of 2.3% of the national economy.

Cork Airport welcomed 1.3 million passengers in the first half of 2023 and is expected to have its busiest year ever for international traffic of 2.7 million passengers.