RNS Number : 3519K
DAA Finance PLC
17 December 2008
DAA Finance plc
EUR250,000,000 6.15 per cent. notes due 2011 of DAA Finance plc,
guaranteed by Dublin Airport Authority plc (ISIN:XS0124714832)
EUR600,000,000 6.5872 per cent. notes due 2018 of DAA Finance plc,
guaranteed by Dublin Airport Authority plc (ISIN:XS0375220588)
Dublin Airport Authority plc ('DAA') said today that overall passenger numbers at its three Irish airports (Dublin, Shannon and Cork) for the eleven months to 30 November 2008 are in line with the same period in 2007. DAA expects that passenger numbers at Dublin and Cork airports for the full year 2008 will show modest growth over 2007 levels whilst passenger numbers at Shannon Airport will show a decline on the previous year. Passenger numbers at the three airports have fallen in each of the last three months, reflecting the recent trends in the wider economy.
DAA estimates that the group's profits for 2008 will be lower than 2007. This reflects lower revenues than anticipated, a slowdown in passenger numbers and an exceptional pension provision in its 2008 results.
Current Irish government estimates for the coming year are that the Irish economy will contract by between 3% and 4% in 2009. DAA currently estimates that passenger volumes will fall across its three Irish airports in 2009 by similar levels and hence that the company is exposed to further falls in underlying earnings in 2009.
The group's financial position from 2010 onwards will depend to a large extent upon the review to be conducted by the Commission for Aviation Regulation next year and changes in passenger levels which are likely to be reflective of the performance of the wider economy. The regulatory decision will determine airport charges at Dublin Airport for the next regulatory period commencing in 2010.
DAA will be reviewing its proposed capital investment programme for the period from 2010 to 2014, and expects that this will be reduced significantly, reflecting the new, lower growth, forecast of passenger numbers during this period. These reductions, including a possible deferral of the planned new parallel runway at Dublin Airport, will not affect the scheduled completion of Terminal 2 and the associated infrastructure at Dublin Airport. Additionally, DAA plans to implement a cost-savings programme covering operating costs including payroll costs. DAA continues to believe that the long term outlook for passenger growth remains positive.
17 December 2008
Enquiries: Ray Gray, Director, DAA Finance plc
Telephone number: +353 1 814 5265
Feargal O'Reilly, Director, DAA Finance plc
Telephone number: +353 1 814 1690
This announcement has been issued through the Companies Announcement Service of
The Irish Stock Exchange
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