Cardiff Airport makes pre-tax losses of £6.6m

Cardiff Airport was bought by the Welsh government in 2013 for £52m

Cardiff Airport made a pre-tax loss of £6.63m last year, its latest accounts showed.

Pre-tax losses were £5.97m in the previous year, and £4.9m in 2015-16.

The board of Welsh Government-owned airport said its financial performance had improved in other respects, including its turnover, which increased to £17.9m from £16.7m.

Board chairman Roger Lewis described it as a "transformational" year which had included significant investment.

On a different profit measure, called earnings before interest, tax, depreciation and amortisation (EBITDA), the airport was in the black for the first time, with a profit of £7,000 - up from a loss of £889,000 the previous year.

The airport's managing director Deb Barber has previously said this was significant, because making a profit under EBITDA triggers repayments of loans to the Welsh Government.

Loans

During the financial year 2017-18 the Welsh Government put £6m into the airport in exchange for shares, and loaned it another £5m.

The airport now owes the Welsh Government a total of £30.6m, having negotiated a 20-year loan facility during 2016-17.

A further £2.5m is owed to other creditors, who are due to be paid after more than a year, and £10.8m is owed to its short-term creditors who are due to be paid by the end of March 2019.

The airport's overall assets are valued at £68.7m, including £13.1m of "intangible" assets.

The airport told BBC Wales this referred to the "individual contractual relationships [it holds with its partners], the details of which are commercially sensitive".

The airport said it had invested in "significant improvements" including a new area in departures with additional seating, a new executive lounge and business lounge, new food and drink outlets, more shops, and a brand new meet and greet parking zone located directly outside the terminal, among others.

The launch of Qatar Airways was a "highlight" of the year

• Cardiff Airport £4m terminal upgrade work to start

• Cardiff Airport scheme allows autistic boy to fly again

• Ministers pay £1m to Qatar Airways to market Wales

The airport has also decided to bring forward its commitment to paying the voluntary 'real living wage', currently £8.75 an hour, for airport staff, across all departments.

This was originally planned to be in place by April 2020 but will now be in place by April 2019 because of the airport's "significantly improved financial performance".

The proposal is under consultation with both airport unions and will be put to ballot shortly.

Highlights

Mr Lewis said "highlights" of the year included:

• Increasing passenger numbers 9% to 1.49 million - this is 50% up on passenger numbers from 2013 when the Welsh Government bought the airport

• Introducing the Qatar Airway Cardiff-Doha flight

• Being named the best UK airport (under 3 million passengers) by the Airport Operators' Association

• Introducing two new airlines - Iberia Express and Blue Island

• Introducing three new destinations - Rome, Madrid and Guernsey

• Working with Visit Wales to increase the number of visitors coming into Wales.

He added: "This truly has been a transformational and a pivotal year for Cardiff Airport. We have achieved significant continued growth in passenger numbers and we have strengthened our financial performance...

"That said, we acknowledge there is still much more for us to do."