Aer Arann, the regional airline reported to be seeking fresh funding, has been hit by a massive decline in its traffic out of Dublin airport amid a severe downturn in passenger demand. The confidential figures, seen by the Sunday Tribune, show the carrier suffered a virtual collapse in its passenger numbers from the capital's airport.

The market share figures for Dublin airport are the most authoritative guide to aviation passenger demand. They show that, in the year to date, Ryanair has suffered a 7.3% drop in passenger numbers as it cuts services and grounds planes. Aer Lingus traffic has been more resilient, with its market share holding at 36.6%, although its traffic slid by 6.5% to the end of June.

The figures are not publicly disclosed by the airlines. While traffic patterns are vital , they only tell half the story, with fare levels telling the other part.

Aer Arann, founded by entrepreneur Pádraig Ó Céidigh, now only holds 1.6% market share at Dublin airport, with its passenger numbers to the end of June falling from 270,823 to 165,767. For June itself, passenger numbers plunged to 29,118 from 47,707 the year before.

Dublin airport remains in the grip of Aer Lingus and Ryanair; the two airlines together control about 80% of total traffic.

Aer Arann's financial and operational performance is shrouded because the company does not publish accounts due to its unlimited status.

It is a significant recipient of public funds via public service obligation (PSO) levies. Last November a route review was announced and three routes were dropped, but no Dublin route to another regional centre was eliminated. The company has come under further pressure recently since An Bord Snip Nua recommended that the €15m of PSO routes be scrapped. The airline is strongly resisting this proposal.

Dublin Airport: Airline Market Shares*

Airline 2009 2008 %

Ryanair: 2009, 4.39m; 2008, 4.74m;% –7.3
Aer Lingus: 2009, 3.69m; 2008, 3.94m; % –6.5
BM: 2009, 233,326; 2008, 272,970; % –14.5
Air France: 2009, 204,291; 2008, 235,764; % –13.3
Aer Arann: 2009, 165,767; 2008, 270,823; % –38.8
Delta: 2009, 118,595; 2008, 123,808; % –4.2
Lufthansa: 2009, 112,917; 2008, 116,050; % –2.7
SAS: 2009, 109,477; 2008, 116,981; % –6.4
Continental: 2009, 97,798; 2008, 100,082; % –2.3
Monarch: 2009, 97,454; 2008: 104,907; % –7.1

*Year to date figures