A weaker performance at Aer Rianta International and higher interest charges have cut after-tax profits at Aer Rianta to about €20 million, the Government was informed this week.

The Cabinet approved the annual report and accounts of the company on Tuesday and they are likely to be officially released next week. Turnover rose from €427 million to approximately €437 million as passenger numbers reached record levels.

However despite this a combination of factors reduced after tax profits significantly from €36.2 million to about €20 million, a 44 per cent drop.

Apart from higher interest charges and weak international performance, the company's Great Southern Hotel chain also came under financial strain. Wages and salaries also rose due to the implementation of national agreements.

The accounts are the last set to be presided over by Aer Rianta chairman Mr Noel Hanlon. His term of office ends towards the end of the summer. The other members of the Aer Rianta board will continue to serve until three new boards take over at Dublin, Shannon and Cork.

Aer Rianta International (ARI) was established in 1988 and is a wholly owned subsidiary of Aer Rianta. It offers both airport retailing and airport operational management consultancy expertise to the airport industry.

In Europe the company operates in Moscow, St Petersburg,Kiev,Hamburg, Dusseldorf, Sofia and Birmingham. In North America it has operations in New York, Montreal, Winnipeg, Edmonton, Ottawa and Halifax. In the Middle East it operates in Bahrain, Kuwait, Damascus, Beirut, Qatar and Muscat.

As part of a joint venture it operates operates 14 speciality fashion, gift and gourmet shops at terminal 4 at New York's JFK.

While passenger numbers in Dublin have risen strongly in the last year this has not been repeated across the aviation sector, with concerns over terrorism denting aviation traffic in several ket markets for ARI. Some of the company's oldest concessions are its strongest performers, particularly Moscow.