Revenue generated out of Malta’s airport dropped by €68 million during the COVID-19, new figures have revealed.
Financial Results for the year 2020 published by the Malta International Airport revealed that revenue had dropped by 67.9%
A key factor was the 76.1% drop in passenger traffic as a direct result of the COVID-19 pandemic and travel restrictions.
“This lead to the worst traffic result and the first loss-making year for the Group since the airport’s privatisation in 2002,” the airport said in a statement.
“In contrast with 2019, when the Group had closed the year with a profit after tax amounting to €33.9 million, Malta International Airport plc ended 2020 with a net loss of €4.3 million at Group level,” it continued.
The airport warns that significant uncertainty and low consumer confidence will continue to dominate the aviation environment, necessitating a continued cautious approach to cash management.
It is trying its best to stay afloat. The airport underwent a significant cost-cutting exercise, lowering its total expenditure to €26.6 million (-28.3%) during the reporting period.
Group staff costs registered a decrease of €2.2 million (-20.2%), which resulted from the Covid Wage Supplement Scheme and temporary salary reductions between April and July 2020, while operating expenditure decreased by €8.3 million (-31.8%).
The approved full financial statements can be accessed on Malta International Airport’s website: www.maltairport.com/corporate/investors/financial-results.
The entire aviation sector has been decimated by the pandemic. Air Malta, the national airline, is losing €170,000 a day and will only survive with EU-back state-aid, the Fiance Minister has said.
Air Malta’s revenue streams have become practically negligible because of the pandemic, Caruana said. However, it was still operating certain flights at a significant loss.
The airline has been struggling for a number of years. It only recorded a profit once in the last 19 years. By the end of 2019, Air Malta allegedly recorded a loss of €30 million.
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