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Revenue At Malta’s Airport Drops By €68 Million Due To COVID-19 Pandemic

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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. 

What do you think of the figures? Comment below

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Julian doesn’t like to talk about himself. But if he did, he would let you know that he’s into anything that has got to do with politics, the environment, social issues, and human interest stories.

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