Rising bank interest charges have prevented Liverpool John Lennon Airport reporting its first-ever profit.
The airport's owner, Peel Holdings said last year that it hoped JLA would follow up record passenger numbers with its maiden profit in 2008.
But JLA's latest results, filed at Companies House recently, show the airport reported a pre-tax loss of £549,000.
Although the pre-tax figure represents a huge improvement on the previous year, when JLA made a pre-tax loss of £3m.
Increased security costs in the wake of terrorist scares also helped keep the airport in the red, but it still hopes to return to profit in the near future, despite the impending recession.
The group saw turnover for the year to March, 2008, rise to £34.4m from £31.7m the year before, with operating profit of £4.6m, up from £582,000.
But an increase in annual interest charges, from £3.6m to £5.2m, took the airport into the red.
Thanks to a £7.8m one-off tax credit, its profit for the financial year stood at £7.2m.
Passenger numbers rose 8 per cent over the year to 5.56m. The year saw Easyjet and Ryanair announce new routes, though Flyglobespan's flights to New York and Toronto stopped after six months.
A spokesman for the airport said: "We were very pleased we managed to reduce the deficit from £3m and get much nearer to break-even.
The additional security charges were a factor in not reaching that point this time.
"It's a tough climate. Nobody is under any illusions, but we are still very confident that we will become profitable in the longer term."
The directors' report attached to the accounts says: "The cost of security provision, arising from the need to protect our national air borders, continues to increase.
"The continuation of the liquid restrictions and liquid testing regime at UK airports represents one of the major operational and significant financial burdens on our airports.
"It should be highlighted that the cost resulting from having these security measures cannot in all cases be recovered from airlines or passengers."
The accounts reveal that JLA charges an average landing fee of £2.31 per passenger, meaning it makes a loss of £5.2m from air transport operations. The low charges help attract low-cost airlines like Easyjet and Ryanair to the airport.
JLA earns revenue from retail rents charged to terminal building shops and concessions, car parking fees and charges for other services. Income from this latter category made a profit of £9.8m.
Post a comment