Airport, Financial Services, Legislation, Lithuania, Transport

International Internet Magazine. Baltic States news & analytics Wednesday, 23.09.2020, 19:38

Lithuanian airports to be exempt from EUR 9.7 mln profit contribution

BC, Vilnius, 12.08.2020.Print version
The Cabinet agreed in principle to exempt Lietuvos Oro Uostai (Lithuanian Airports, LOU) from transferring 9.7 million euros of its 2019 profit into the state's coffers to prevent the state-owned company from becoming insolvent, informs LETA/BNS.

If LOU made the profit contribution for 2019, it would have to immediately repay a part of a loan from the Nordic Investment Bank (NIB), more than 13 million euros, and would not be able to borrow another 70 million euros from the bank for strategic projects, according to the Transport Ministry.

The operator of the airports of Vilnius, Kaunas and Palanga forecasts that it will lose up to 50 percent, or around 25 million euros, in revenue this year.  

LOU has reported a net profit of 13.6 million euros for 2019, up 56.8 percent from 8.7 million euros in 2018. Annual revenue rose by 12.6 percent to 48.5 million euros.

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