Atlantic Aviation Group triples pre-tax profits to €3.12 million on airline contract wins

Shannon-based MRO provider Atlantic Aviation Group has reported a more than threefold increase in pre-tax profits to €3.12 million in 2024, driven by new multi-year contracts with blue-chip multinational airlines and dividend income from its UK defence subsidiary.

According to the Irish Independent, newly filed accounts show group revenues rose 3% from €101 million to €103.9 million, with €91.1 million generated in Ireland and €12.79 million in the UK. Repair and overhaul activity accounted for €95.5 million of total revenues, with the remainder from equipment hire, line maintenance and other services.

Pre-tax profits were supported by dividend income of €1.92 million from AAG Defence Services Limited, the group's UK-based defence subsidiary operating from RAF Brize Norton, the largest Royal Air Force base in the United Kingdom. The subsidiary operates from a 24,000 square metre, three-bay maintenance facility on site.

Operating profits doubled to €4 million, with interest costs of €461,296 reducing the figure to €3.62 million before a corporation tax charge of €501,666 brought post-tax profits to €3.12 million. The group paid dividends of €1.76 million during the year.

Staff numbers increased from 703 to 724 as the group completed a successful international recruitment campaign to attract experienced technical staff. Staff costs rose from €44.5 million to €47.99 million.

The directors said the addition of several new nose-to-tail contracts with multinational airlines resulted in a substantial improvement to overall group performance and profitability. While the civil segment recorded significant year-on-year growth, the defence business was affected by the cessation of certain non-recurring revenue streams but remained profitable.

Looking ahead, the directors said the group planned to diversify into component maintenance and strengthen its training academy as part of a controlled growth strategy.

Read the full financial breakdown in the complete report.