The revival of Ireland West Airport Knock has been absolutely extraordinary, driven by unprecedented revenues and a sharp increase in the number of passengers.
In 2022, the number of passengers soared by a staggering 314%, reaching a grand total of 721,894, which is equivalent to 89% of the levels before the Covid-19 pandemic.
The airport’s revenues also experienced a remarkable surge, exceeding €17.93 million, more than four times the figure from the previous year.
This impressive resurgence can be credited to the restoration of air services that existed before Covid-19 and the addition of new destinations.
Passenger growth and revenue surge
Despite the challenges faced by Knock Airport, passenger growth and a surge in revenue have propelled the airport towards a remarkable recovery. In 2022, passenger numbers increased by an impressive 314% to reach 721,894, representing 89% of pre-Covid levels. Revenues also saw a significant increase, more than quadrupling from €3.89 million to €17.93 million. This surpasses the record revenues of €14.9 million in 2019 by 20%.
The recovery can be attributed to the reinstatement of all pre-Covid capacity and air services by Ryanair, as well as the return of Aer Lingus with daily services to London Gatwick and a new service to London Heathrow. These developments have provided a major boost for the airport and the region. Despite cost containment challenges, the airport’s pre-tax profit for the year was €2.075 million.
Factors Behind the Recovery
The remarkable recovery of Knock Airport can be attributed to the reinstatement and increased capacity of air services by Ryanair and the return of Aer Lingus with new and expanded routes.
Ryanair reinstated all of its pre-Covid capacity and air services to the UK and Europe, whilst also increasing the available seat capacity to popular destinations by 16% compared to 2019.
Aer Lingus, on the other hand, resumed its daily London Gatwick service and introduced a new daily service to London Heathrow.
These developments have provided a major boost for the airport and the region. The increased number of flights and destinations offered by these airlines have significantly contributed to the airport’s record revenues and passenger growth.
Financial Challenges Faced
One of the main factors influencing the impressive recovery of Knock Airport is the significant financial challenges it has faced in recent years. The airport has encountered difficulties in controlling costs due to substantial increases in fuel, electricity, energy, insurance, and other utility costs. These upward inflationary pressures and wage cost increases have presented ongoing challenges for the airport.
Furthermore, the company’s pre-tax profit takes into account non-cash depreciation and impairment costs of €3.14 million. Staff costs have more than doubled, from €2.87 million to €5.75 million, and directors’ pay amounted to €216,321, including remuneration and pension contributions.
Despite these challenges, the airport has received government support and grants, including government grant funding of €1.78 million under the Regional Airport Programme and capital grants totaling €2.05 million.
Focus on infrastructure investment
The airport’s strategic focus on infrastructure investment has been crucial in facilitating its remarkable recovery. With plans to invest nearly £8 million in 2023, the airport aims to maintain and improve critical safety and security infrastructure. This ongoing investment is vital for the airport’s long-term success and growth.
Furthermore, the airport’s access to one of Europe’s major international airport hubs with the new daily service to London Heathrow will provide a significant boost for both the airport and the region. The directors recognize the importance of this service and its potential to attract more passengers and airlines.
With a strong financial foundation, including shareholder funds of £10 million and accumulated profits of £6.17 million, the airport is well positioned to continue its infrastructure investment and take advantage of its remarkable recovery.
Government Support and Grants
In an article titled ‘Knock Airport Soars: Record Revenues Ignite Remarkable Recovery’, the subtopic of ‘Government Support and Grants’ highlights the significant role played by financial assistance in the airport’s success.
The airport’s profit of €2.075 million includes other operating income of €4.18 million, which consists of government grant funding of €1.78 million under the Regional Airport Programme and capital grants amounting to €2.05 million.
Additionally, the airport received €335,611 under the Employer Wage Subsidy Scheme (EWSS).
This financial support has been instrumental in enabling the airport to maintain its operations, improve infrastructure, and navigate the challenges posed by increased costs in fuel, electricity, energy, insurance, and other utilities.
With its cash funds rising to €9.69 million, the airport is well-positioned to continue its remarkable recovery and contribute to the economic growth of the region.
Conclusion
In conclusion, Ireland West Airport Knock has experienced a remarkable recovery, with passenger numbers and revenues surpassing pre-Covid levels. The reinstatement of air services by Ryanair and Aer Lingus, along with increased seat capacity, played a significant role in this resurgence.
Despite facing financial challenges, the airport remains committed to investing in critical safety and security infrastructure. While rising costs may pose a challenge, the airport’s strong recovery and government support demonstrate its resilience and potential for ongoing growth.
