Airport, Covid-19, Latvia, Tourism, Transport

International Internet Magazine. Baltic States news & analytics Sunday, 05.07.2020, 18:52

Riga Airport posts EUR 704,000 in losses in Q1

BC, Riga, 03.06.2020.Print version
The turnover of Riga International Airport in the first three months of 2020 was EUR 12.64 million, which is 10.2% less than in the corresponding period of 2019, the airport reports for LETA.

Furthermore, the airport operated with EUR 704,105 in losses in the first quarter.

The management report explains that in the context of the Covid-19 pandemic, international passenger transport through airports, ports, as well as buses and rail was halted on March 17, with the exception of passenger transport by state aircraft and military transport.

In response to the sharp decline in the number of passengers served and revenue, as well as to ensure the continuity of operations, with the aim of reducing the potential losses caused by Covid-19, the airport launched a comprehensive cost reduction program.

These included decisions to reduce staff costs to 40%, operating costs to 60% and investments to 85%. Despite the reduction in costs and taking into account the sharp decline in passengers and the high amount of fixed costs, Riga Airport has closed the first quarter with a loss of EUR 0.7 million.

At the same time, the report notes that at the time of the publication of the first quarterly report, the airport's liquidity was sufficient to cover liabilities, but its ability to meet liabilities in the future depends on various scenarios for the duration of the declared state of emergency.

The report also reminded that Riga Airport applied to its shareholder for support to cover possible losses caused by the Covid-19 crisis, and on April 23 the Cabinet of Ministers decided to provide support by investing EUR 49.91 million in the airport's share capital, as well as to leave at the disposal of the airport the dividends that the company had to pay from last year's profit. As a result, the airport received a total of EUR 54.42 million in support, which allows it to continue operating during the state of emergency period and to settle its commitments in a timely manner.

As reported, in the first three months of 2019, Riga Airport achieved EUR 14.074 million in turnover, and EUR 892,074 in profit.

Search site