Company’s unaudited interim report for the first half of the year shows that due to the significant drop in the number of passengers and flights caused by the global pandemic of coronavirus COVID-19, Riga Airport has operated with losses in the amount of 6.5 million euros in the first six months of this year.
The Airport's net turnover in the first half of 2020 amounted to only 16.7 million euros, which is 14.4 million euros or 46% less than planned in this year's budget. The Airport's revenue from aviation services in the first half of the year accounted for 8.7 million euros, which is 10.9 million euros or 56% less than planned, while revenue from non-aviation services was 8 million euros – 3.5 million euros or 30% less than planned.
Laila Odiņa, Chairperson of the Board of Riga International Airport: “In January and February, the Airport continued to grow as successfully as in 2019, maintaining its position among the fastest growing European airports. In March, when the Airport was actually shut down due to the COVID-19 restrictions, the company promptly launched a well-considered cost-cutting programme. As a result, although the Airport, as an infrastructure company, has a high share of fixed costs, the company's total operating expenses were reduced by more than a quarter, continuing to provide repatriation, cargo and business flights.”
“Although the financial results of the first half of the year are better than expected during the most difficult period of the crisis, given the changing and uncertain situation in the aviation sector, there are still some serious challenges in maintaining the company's stability and competitiveness,” emphasizes Airport’s Chairperson of the Board.
As reported before, due to the almost complete suspension of operation for several months, only 1.3 million passengers and 18 796 flights were served at Riga Airport in the first six months of 2020, which is respectively 62.9% and 54.8% less than a year before.
In the eight months of this year, 1.7 million passengers were handled at Riga Airport – 67.5% less than in the corresponding period last year. There were 25.6 thousand flights operated at the Airport, which is 56.1% less than in the eight months of last year.
13.8 thousand tonnes of cargo were handled at Riga Airport between January and the end of August.
Riga Airport is a fast-growing Northern European air traffic hub. Riga Airport served more than 7.8 million passengers in 2019. The Cirium study recognized Riga Airport as the fourth most punctual airport in the world in 2019.