Rīga airport losses in first half of 2020 amount to EUR 6.5 million

In the first six months of 2020, the state stock company “Rīga International Airport” experienced a loss of EUR 6.5 million, according to the company's unaudited interim report for the first half-year, the company said September 2.

At the airport, the net turnover for the first half of 2020 was EUR 16.7 million, EUR 14.4 million or 46% less than expected in this year's budget. In the first half of the year, revenues from aviation services were EUR 8.7 million, EUR 10.9 million or 56% lower than expected, while revenues from non-aircraft services were EUR 8 million – EUR 3.5 million or 30% lower than expected.

"In January and February, the airport continued its successful growth from 2019, maintaining its position among the fastest-growing European airports. In March, when the airport's operations due to COVID-19 restrictions were suspended, the company operationally launched a revised cost-cutting program. 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 services, cargo and business flights," said Laila Odina, Chair of the airport's Board of Governors.

She said that, although the first half-year financial results are better than expected during the worst period of the crisis, given the changing and uncertain situation in the aviation sector, the challenges in ensuring stability and maintaining competitiveness continue.

 

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