Cost to re-open airport projected to hit £193m

Doncaster Sheffield Airport is expected to make losses for the first nine years of operation

The cost of re-opening Doncaster Sheffield Airport (DSA) has risen by nearly £50m to £193m, according to council papers.

The report, prepared for City of Doncaster Council's cabinet, said the site was also expected to make a loss for the first nine years, up from the previous estimate of five.

DSA has been closed since 2022 when operator Peel Group said it was no longer financially viable.

Asked about the rising cost Doncaster Mayor Ros Jones said the report set out the challenges and opportunities in a project "of this size and scale".

The additional cost outlined in the report comes just a month after council leaders in South Yorkshire, together with South Yorkshire Mayor Oliver Coppard, approved spending almost £160m of public money the project.

Coppard previously said reopening the airport would support 5,000 jobs, boost the economy by £5bn and provide wider benefits of £2bn by 2050.

However, in the latest report councillors were also warned that if the operating costs of the airport rose by another 20% within the first three years it may need to close.

Jones said that re-opening the airport was a massive undertaking but one that was "vital for the future prosperity, well-being and economic growth of the city, region and the country".

"The ambition is that the airport does become a success story for Doncaster and South Yorkshire," she said.

"The report, which Cabinet is being asked to support, sets out the range of factors that come into play to make this happen, including approving the finances and setting the timeframe for economic profit."

In addition to the £160m, the South Yorkshire Mayoral Combined Authority (SYMCA) had already allocated £16.1m to the project, with City of Doncaster Council expected to provide funding of £17.4m.

The report, however, says the £160m will only be released in annual instalments and will not cover all the start-up costs of the first few years.

Therefore councillors will be asked to approve a £57m bridging loan at a meeting on 27 November, until the company set up to run the airport, Fly Doncaster, begins to make a profit.

According to the council papers, the airport is projected to make losses for the first nine years of operation (2026-2034) of £81.1m and thereafter (up to 2049) profit before tax and interest of £230.2m.

An SYMCA spokesperson said they had always been "clear and upfront about the commercial and financial challenges" of reopening the airport and the figures contained in the council papers were "in line with the funding envelope we set for the project at that point".

They added: "The extensive work we have undertaken makes clear that reopening DSA and creating a world leading sustainable aviation and advanced manufacturing hub at Gateway East offers a unique opportunity for jobs and growth.

"We will remain diligent in the protection of taxpayers' money as we pursue that opportunity, while recognising the risks and challenges we face developing a project of this size and scale."

Doncaster Mayor Ros Jones said the re-opening of the airport remains her priority.

Doncaster Chamber of Commerce said the re-opening of the airport had the support of South Yorkshire's business community and it should be judged through the impact on the wider regional economy, not just the airport's profit and loss account.

A spokesperson said: "Due diligence has been done time and time again, and the business case has been rigorously tested. It's time for the region to have confidence in the work it has commissioned.

"Of course, this cannot come at any cost, but the evidence shows that reopening the airport is a sound, strategic investment in South Yorkshire's economic future.

"We now need a positive decision - one that demonstrates ambition, belief, and long-term thinking for our region."

Freight operations are expected to start in 2027, with a fully operational airport, including passenger flights, planned for summer 2028.

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