Luas operator incurs €21.1m loss due to €20.7m onerous lease provision
Gordon Deegan
The operator of the Luas in Dublin recorded pre-tax losses of €21.19 million last year due mainly to a €20.75 million onerous contract lease provision.
Numbers on the Luas light rail network last year increased by 12 per cent to approximately 54 million passenger journeys, and the increase in passenger traffic contributed to revenues at Transdev Dublin Light Rail Ltd (TDLR) rising by 11 per cent from €92.38 million to €102.2 million.
The pre-tax loss of €21.19 million is a six fold increase on the pre-tax loss of €3.53 million incurred in 2023.
TDLR recorded the €20.75 million onerous lease provision and note attached to the accounts explains it was incurred due to “the unavoidable costs of meeting the obligations under The Luas Operations and Maintenance Contract with the National Transport Authority (NTA) and Transport Infrastructure Ireland (TII) exceed the economic benefits expected to be received under it".
The note states that at December 31st 2024, the €20.75 million provision is recognised for the expected losses for the period to August 31st 2026, the remaining contract period.
The note states that at year end, TDLR and the NTA and TII had commenced discussions with regards to potential compensation to reduce the differential between the actual out-turns and the NACE index, amended by a Settlement Agreement signed in 2024 with TII.
The directors state that the index remained stagnant, whereas labour cost increases have been experienced in the market since the agreement and the settlement agreement was amended on September 15th 2025.
TDLR initially reached the settlement agreement with TII in June 2024 which resulted in a better correlation between staff salary evolution and the labour market and this agreement includes backpay from January 2021.
The agreement contributed to staff costs at TDLR last year increasing by €9m or 24 per cent from €37.16 million to €46.16 million.
Numbers employed increased by 30 from 648 to 678.
The directors also state that “due to the unforeseen costs resulting from the COVID-19 pandemic, an agreement was reached with TII in 2024 for the sole provision of relief to the company in relation to the deductions applied during the period from March 2020 to May 2021”.
The accounts disclose that in May 2024, TDLR received a share capital injection of €27 million.
A LUAS tram, #5037, set alight during the Dublin Riots from November 2023 is currently being repaired “and is scheduled to be back in service at the beginning of 2026”.
Another LUAS tram, #3003, damaged in a road traffic accident with a bus in March 2019 and is back in service since August 2025 after undergoing repairs since 2024.
A note attached to the accounts show that €2m provision has been recognised for repair costs arising from road traffic accidents for two trams (#3003 and #5037) “which are expected to be in excess of the costs covered by insurance”.
The notes that it is expected that the costs will be primarily incurred in the next financial year.
The firm has also provided for a €1.23 million insurance provision for 2024 for insurance claims below the excess amount.
The note states that “it is expected that the current costs provided for will be substantially incurred within two years of the statement of financial position date”.
In a fresh blow to the operations of the LUAS, the directors state that in a post balance sheet event that on August 19th 2025, the Dockland Bridge was destroyed from a fire that started from a gas leak.
The note states that “this has interrupted the Luas traffic between Connolly Station and The Point on the Red Line. As the Company is responsible for the Bridge maintenance it activated the infrastructure policy to manage the repair with TII”.
Directors’ pay totalled €502,982. The €21.19m 2024 loss offset by the share capital injection of €27 million contributed to the shareholders' deficit reducing from €28.23 million to €22.43 million.
Cash funds increased from €2.46 million to €3.3 million.
